Moody’s trims Alliance Healthcare

Moody’s Investors Service said it downgraded Alliance Healthcare Services, Inc.’s corporate family rating to Caa2 from B3 and probability of default rating to Caa2-PD from B3-PD. Moody’s also downgraded the ratings of the senior secured first-lien credit facilities to Caa1 from B2 and rating on the secured second-lien term loan to Ca from Caa2.

“The downgrade reflects the company’s weak liquidity and increased cash needs at a time when the operating conditions will deteriorate significantly in the near term due to the worsening Covid-19 outbreak. Moody’s expects that Alliance will see an overall decline in diagnostic service volume, primarily as elective procedures are deferred. As a result, the probability of default, including by way of a transaction that Moody’s considers to be a distressed exchange, has risen significantly,” the agency said in a press release.

The outlook remains negative.

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