Moody's: Genoa outlook up to stable; loan rated Ba3

Moody's Investors Service said it changed the outlook of Genoa Healthcare Group, LLC to stable from negative as the company amended and extended its revolving credit facility's maturity date to 2012.

Moody's said it assigned a Ba3 (LGD2, 23%) rating to the $12 million first-lien revolving credit facility and affirmed the B2 corporate family rating, B2 probability of default rating, Ba3 (LGD2, 23%) rating on the company's $100 million first-lien term loan, and the B3 (LGD4, 66% from LGD4, 64%) rating on the $50 million second-lien term loan.

The B2 corporate family rating considers the company's moderate debt leverage and interest coverage, but remains constrained by Genoa's revenue concentration in Florida and reliance on Medicaid reimbursement, Moody's said.

The stable outlook reflects the expectation of good liquidity, reduced refinancing risk as the company has no substantial debt maturities prior to mid-2012 and expected near-term stability in the reimbursement environment, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.