Moody’s lowers Genex first-lien ratings

Moody's Investors Service said it affirmed the B3 corporate family rating and B3-PD probability of default rating of Genex Holdings, Inc.

The agency also said it downgraded Genex's first-lien credit facility ratings to B2 from B1, reflecting a change in the financing mix following a $25 million incremental first-lien term loan borrowing.

The funds from the incremental borrowing were used to acquire a provider of medical-review services for the workers' compensation and auto insurance markets.

The outlook is stable.

The ratings reflect the company’s strong market position in workers' compensation case management and related medical cost containment services, along with its national network of nurses and case managers and a record of stable revenues, Moody’s said.

These strengths are offset by the company's aggressive financial leverage and limited fixed-charge coverage, exposure to cyclicality in the workers' compensation insurance market and integration and contingent risks associated with acquisitions, the agency said.

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