Moody’s rates Median, loans B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Median BV, following the planned merger with Priory Group.

At the same time, Moody's assigned a B3 instrument rating to the new €800 million-equivalent senior secured covenant-lite term loan B1 and B2 and the €120 million senior secured multi-currency revolving credit facility made available to Median.

The outlook is positive.

“The B3 rating reflects Median's improved business profile following the merger with Priory Group in the U.K., transforming the company into a leading European provider of specialist care with leading positions in mental and addiction rehabilitation in Germany and the U.K.; the positive social demographic factors supporting long-term demand and volume growth in both markets; the relative high barriers of entry because of regulatory requirements; and adequate liquidity including the agency's expectations of positive Moody's adjusted free cash flow over the next 12 to 18 months and access to its €120 million RCF,” the agency said in a news release.

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