Moody's flips Datavant view to negative

Moody’s Investors Service said it revised its outlook for CT Technologies Intermediate Holdings, Inc. (Datavant) to negative from positive and affirmed its B3 ratings on the company and its senior secured credit facilities.

“The outlook was changed to negative from positive to reflect the company's overall liquidity deterioration and increased financial leverage, which is now much higher than Moody's had previously anticipated following the merger of Datavant and CIOX Health in 2021,” the agency said in a press release.

Moody’s noted Datavant’s leverage for the last 12 months ended in September clocked in at about 13x.

“Moody's also expects free cash flow to debt to remain in the low-single-digits for fiscal year 2023 given high capital expenditure needs. The revolving credit facility will likely be relied upon intra quarterly to fund high working capital requirements,” the agency said.

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