Moody’s lowers U.S. Acute Care

Moody's Investors Service said it downgraded U.S. Acute Care Solutions, LLC's corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and the rating on the company's backed senior secured global notes due 2026 to B3 from B2.

The downgrade reflects the company's aggressive financial policy with a track record of substantial and consistent dividend payouts since a new capital structure was put in place in February 2021; preferred shares that will become callable in March 2024; growing refinancing risk as the company will probably need to refinance its entire capital structure in early 2025, Moody’s said.

The unrated revolver is due in 2025 and the rest of its debt in 2026, which means it would make sense to refinance the entire structure, the agency said.

The outlook remains stable.

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