Moody's rates PointClickCare loan B2

Moody’s Investors Service said it gave a B2 rating to PointClickCare Technologies Inc.’s new $400 million first-lien term loan tranche. Concurrently, the agency downgraded PointClickCare’s corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD, it's first-lien debt rating to B2 from B1, and changed its outlook to negative from stable.

The company will use the incremental term loan to finance the acquisition of Audacious Inquiry, LLC.

"The downgrade is driven by PointClickCare's material increase in leverage in order to fund the acquisition of Audacious, signaling a shift to more aggressive fiscal policies" said Jonathan Reid, a Moody's analyst, in a press release.

"The negative outlook reflects the possibility that PCC could engage in further leveraging transactions, delaying deleveraging," Reid said.

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