S&P lifts RadNet

S&P said it raised its ratings on RadNet Inc., its revolver and its first-lien term loan to B+ from B. The 3 recovery ratings for the loans are unchanged, indicating significant (50%-70%; rounded estimate: 60%) recovery in default.

“RadNet recently closed a public equity offering, raising net proceeds of $245 million, which will be partly used to reduce leverage. This exemplifies its commitment to deleveraging. Following this transaction and with a slight improvement in EBITDA, we expect S&P Global Ratings-adjusted leverage will decline below 4.5x for 2023 from 5.2x in 2022,” S&P said in a press release.

Additionally, the agency noted “RadNet has maintained a disciplined approach toward acquisitions, de novo and joint ventures strategy, while focusing on deleveraging over the past five years.RadNet's revenue increased by 1.5x over the past five years, while maintaining a disciplined growth strategy.”

The outlook is stable.

© 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.