Moody’s rates Radiology Partners, loans

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Radiology Partners Holdings, LLC.

The agency also assigned B2 (LGD3) ratings to Radiology Partners, Inc.'s secured first-lien term loans and revolving credit facility and a Caa2 (LGD6) rating to its second-lien term loans.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects the company’s very high financial leverage combined with an aggressive debt funded growth strategy.

Radiology Partners’ adjusted debt/EBITDA, including acquisition related pro forma adjustments, was about 8 times at the end of March 31. This leaves little cushion within the current rating, and any further increase in leverage could result in a downgrade, the agency explained.

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