Moody's rates AMN loans Ba1

Moody's Investors Service said it assigned Ba1 (LGD2, 25%) ratings to AMN Healthcare Services, Inc.'s proposed $75 million senior secured revolver due 2012 and $110 million senior secured first-lien term loan B due 2013 and affirmed its Ba2 corporate family rating and Ba3 probability-of-default rating.

The outlook was changed to negative from stable.

AMN plans to use the proceeds from the new term loan to refinance the $77 million outstanding balance on its existing term loan, cash collateralize about $22 million in letters of credit and pay fees and expenses. The proposed $75 million revolver is expected to be undrawn at closing.

The agency said the affirmation of AMN's Ba2 corporate family rating incorporates the company's trend of permanent debt reduction over the past four years, which has partly alleviated a greater-than-expected decline in revenue and operating performance during the current cyclical downturn.

Nonetheless, the outlook was changed to negative because of a steep deterioration in revenue and EBITDA and the agency's expectations that year-over-year financial results will continue to worsen through the first half of 2010.

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