Moody's trims Sevita

Moody's Investors Service said it downgraded the ratings of National Mentor Holdings Inc. (Sevita) including the senior secured first-lien bank credit facilities to Caa1 from B3, as well as the rating of the senior secured second-lien term loan to Caa3 from Caa2. The agency also lowered the corporate family rating to Caa1 from B3 and the probability of default rating to Caa1-PD from B3-PD.

“The downgrade of Sevita's ratings reflects deteriorating operating performance, predominantly due to labor issues translating to wage inflation that will continue to pressure the company's EBITDA and margins, resulting in very high financial leverage and a weak liquidity position going forward,” the agency said in a press release.

The outlook is stable.

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