Moody's rates American Medical loans B2

Moody's Investors Service said it assigned a B2 rating to American Medical Holdings' proposed senior secured credit facility. Moody's also assigned a senior implied rating of B2 and a senior unsecured issuer rating of B3 to American Medical. The outlook is stable.

Moody's assigned a B2 rating to American Medical's $25 million senior secured revolving credit facility due 2009, $32.5 million senior secured term loan A due 2009 and $100 million senior secured term loan B due 2010.

Moody's said the rating assignment reflects the company's short operating history under its current corporate structure, small research and development budget and reliance on licensing products from outside vendors, potential for additional pricing pressure in its wound closure division, limited resources and scale relative to larger competitors and the absence of patents and long-term contracts.

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