Moody’s assigns Signify loan B2

Moody’s Investors Service said it gave Signify Health LLC’s new, $125 million non-fungible incremental first-lien term loan a B2 rating.

Proceeds will be used to pay down Signify's nearly fully drawn revolver, allocate funds for tuck-in acquisitions and related earn-out obligations, put $15 million of cash on the balance sheet and pay for transaction fees and expenses.

Moody’s also changed the outlook to stable from negative. “The stabilization of Signify's outlook from negative reflects the strong likelihood that the company's 2020 revenue will easily surpass Moody's expectations from earlier this year when the Covid-19 crisis took hold, and we expected revenue to be up only minimally relative to 2019, Moody’s said in a press release.

The agency noted 2020 revenue may approach $600 million, up nearly 18% over 2019 revenue, pro forma for the November 2019 merger with Remedy Partners.

Moody’s also affirmed Signify’s B2 corporate family, B2-PD probability of default rating and the B2 ratings on its revolver and first-lien term loan.

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