Moody's downgrades HealthTronics, cuts view to negative

Moody's Investors Service said it downgraded HealthTronics, Inc.'s corporate family rating and $50 million senior secured revolving credit facility to B1 from Ba3.

The outlook was changed to negative.

Moody's said the downgrade of the corporate family rating reflects a spate of negative corporate developments, culminating in the recent announcement of a major reorganization effort.

Factors that support the rating include the company's leading market position in the urology sub-segment of the health-care industry with an approximate 27% share.

The negative outlook reflects Moody's immediate concerns with recent, negative top-line growth as well as lingering concerns with respect to the substantial turnover that has occurred within the company's executive team, apparent weaknesses in internal controls plus the recent announcement of significant restructuring initiatives that will apparently be ongoing for some time.

© 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.