Fitch affirms DaVita

Fitch Ratings said it affirmed DaVita Inc.'s issuer default ratings at BB-, senior secured bank credit facility at BB and senior notes at BB-.

The outlook is stable.

The ratings reflect the company's strong free cash flow, adequate internal liquidity and access to credit markets, Fitch said.

The $4.4 billion acquisition of HealthCare Partners is manageable operationally and financially for Davita but will limit its flexibility within the BB- category, the agency said.

Pro forma for the debt funding of the acquisition, reported gross debt-to-EBITDA ratio is about 4.8x and 3.8x when annualizing the contribution of Healthcare Partners EBITDA, the agency noted.

© 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.