Moody's lowers HealthTronics

Moody's Investors Service said it downgraded the corporate family rating of HealthTronics, Inc. to B2 from B1 and changed the outlook to stable from negative.

Concurrently, Moody's said it downgraded the rating on the $60 million senior secured revolving credit facility to B1 from Ba3.

The last rating action was on Oct. 31, 2007 when Moody's said it affirmed both the B1 corporate family rating and the negative outlook.

According to the agency, the downgrade reflects HealthTronics' recent increase in corporate debt to fund acquisitions and stock repurchases while the B2 corporate family rating is primarily supported by the low financial leverage and good interest coverage that the company currently maintains.

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