Moody's rates TriZetto B1, loans Ba3

Moody's Investors Service said it assigned TriZetto Group, Inc. corporate family and probability-of-default ratings of B1.

The agency also assigned Ba3 ratings (LGD3, 34%) to TriZetto's proposed $78 million term loan A, $315 million term loan B and $65 million revolving credit facility.

The outlook is stable.

Moody's said the B1 corporate family rating reflects the strength of TriZetto's market position, favorable industry dynamics, a stable customer base and unique relationship with BlueCross BlueShield of Tennessee and Regence.

The rating is supported by a recurring revenue model that should withstand economic cycles given the ongoing need for medical care, its competitive product portfolio, sticky customer relationships, mission critical nature of its products and high switching costs, the agency said.

The rating is constrained by TriZetto's high leverage arising from the leveraged buyout, relatively modest size in a highly competitive niche and consolidation risk of health care payer organizations, Moody's said.

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