Moody's affirms HealthTronics

Moody's Investors Service said it affirmed HealthTronics, Inc.'s corporate family rating B1, its probability-of-default rating at B2 and its 50 million senior secured revolving credit facility, at Ba3 (LGD2, 27%).

The outlook remains negative.

The corporate family rating reflects the company's nominal free cash flow and modestly declining lithotripsy volumes, factors that are mitigated by the lack of corporate level debt on the company's balance sheet, the agency said.

The corporate family rating continues to be constrained by the company's small size, its short operating history after the merger and the reliance on acquisitions to support future growth, Moody's said.

Supporting the ratings are the company's leading market share, its stable, broad-based provider network, strong EBITDA margins and favorable payer mix, the agency said.

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