Moody's rates Healthways loan Ba2

Moody's Investors Service said it affirmed Healthways, Inc.'s corporate family rating at Ba2 and probability of default rating at Ba3, along with its Ba2 rating on the senior secured term loan. The agency also said it assigned a Ba2 (LGD3, 31%) rating to the $345 million revolving credit facility, which was recently amended to extend the maturity to December 2013 from December 2011. Moody's said it lowered the speculative grade liquidity rating to SGL-2 from SGL-1.

The outlook was revised to negative from stable.

The negative outlook reflects the company's financial performance, which has been below expectations, Moody's said. As a result of economic pressures and contract losses over the last several years, the company has not achieved the growth and scale that is reflective of the Ba2 rating, the agency said.

The ratings also reflect an expectation that Healthways will maintain good liquidity over the next 12 months, Moody's said.

© 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.