Moody's upgrades CIOX

Moody's Investors Service said it upgraded CT Technologies Intermediate Holdings, Inc.'s corporate family rating to Caa2 from Caa3 and probability of default rating to Caa2-PD from Caa3-PD.

The company does business as CIOX Health, Moody's noted.

The agency also said it upgraded the rating on the company's $597 million senior secured first-lien term loan due 2021 to Caa1 from Caa3 and withdrew the existing Caa3 rating on the $35 million senior secured first-lien revolving credit facility due in December 2019.

The outlook remains stable.

The upgrades follow CIOX Health's extension of its $35 million revolver, as well as the $40 million cash equity infusion from its sponsor, Moody's said.

The ratings reflect the company's very high leverage at about 10.2x for the trailing 12 months, the agency said, along with an expectation that any improvement will be slow over the next year.

The ratings also consider the company's weak interest coverage with EBITA-to-interest of 0.9x and an expectation of weak liquidity with negative cash flow for 2019, Moody's said.

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