Moody's lowers Cano Health, rates notes Caa2

Moody's Investors Service said it downgraded the ratings of Cano Health, LLC, including the corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

Concurrently, Moody's affirmed the ratings of Cano's first-lien senior secured credit facilities at B2 and assigned Caa2 ratings to the new senior notes.

The outlook remains stable.

The speculative grade liquidity rating was downgraded from SGL-2 (good) to SGL-3 (adequate).

The rating actions follow Cano's announcement to add $100 million incremental senior secured term loan B, and new $300 million seven-year senior unsecured notes. The new debt will be used to fund the $250 million senior unsecured bridge facility and add about $140 million of cash to the balance sheet to use for future acquisitions.

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