Moody's stabilizes Midwest Vet outlook

Moody's Investors Service said it revised its outlook for Midwest Veterinary Partners, LLC to stable from negative and affirmed its B3 corporate family rating, B3-PD probability of default rating and B3 ratings on the senior secured first-lien credit facilities.

The agency said it expects MVP will maintain its good liquidity profile with credit metrics and positive free cash flow that support its B3 ratings over the next 12 to 18 months.

“There is greater clarity on the true underlying cash-generating ability of the company as reported EBITDA and cash flows have rapidly improved as of June 30, 2023. To that end, the company generated $133 million of reported LTM EBITDA at June 30, 2023, in comparison to just $1 million at Dec. 31, 2022. Moody's expects that leverage will remain high (7.2 times Moody's adjusted debt to EBITDA as of June 30, 2023), as Moody's believes MVP will resume its long-term roll-up, debt-funded acquisition strategy over time –– if and when funding conditions are supportive,” the agency said in a press release.

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