Moody’s ups Ramsay Generale PDR

Moody's Investors Service said it affirmed the Ba3 corporate family rating at Ramsay Generale de Sante and the Ba3 rating assigned to its senior secured loan facilities.

Concurrently the agency upgraded the probability of default rating to Ba3-PD from B1-PD.

The outlook remains positive.

Moody’s said the upgrade of the probability of default rating reflects the lower recovery rate of 50% from 65% used in Moody's Loss Given Default for Speculative-Grade Companies methodology due to the transition to a covenant-lite capital structure as part of Ramsay Generale’s proposed amend and extend transaction which is expected to close on the 9th August 2017.

As part of this transaction, Ramsay Generale will replace the existing financial maintenance covenant (set at 4 times adjusted leverage) with a springing net leverage covenant set at 5 times and triggered only when the €100 million revolving credit facility is drawn by more than 40%, the agency explained.

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