Moody's keeps AmeriPath notes on review

Moody's Investors Service said AmeriPath, Inc.'s B3 (LGD4, 62%) senior subordinated notes and AmeriPath Intermediate Holdings, Inc.'s Caa1 (LGD5, 88%) floating-rate PIK toggle notes remain under review for possible upgrade pending the outcome of a tender offer for both notes.

AmeriPath's remaining ratings, including the B2 corporate credit rating, were withdrawn following the company's acquisition by Quest Diagnostics Inc.

The agency downgraded Quest's senior unsecured notes and senior credit facility to Baa3 from Baa2, changed the outlook to stable from under review for possible downgrade and said the downgrade reflects the company's higher leverage and increased operational risk following the all-cash $2 billion acquisition of AmeriPath.

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