Moody's rates Kinetic loan Ba1

Moody's Investors Service said it affirmed the long-term ratings of Kinetic Concepts, Inc. including the Ba2 corporate family and probability of default ratings and assigned a Ba1 (LGD2, 26%) rating to the new $1.2 billion credit facility, including a $550 million term loan A and a $650 million revolver due January 2016.

Moody's also assigned a SGL-1 speculative grade liquidity rating, reflecting the expectation for very good liquidity over the next 12 months.

The outlook is stable.

The ratings reflect Kinetic's considerable scale and leading competitive position in the wound care market, moderate financial policies, history of debt repayment and large addressable markets for products, Moody's said.

The ratings are constrained by the company's product concentration risk, as well as risks associated with the increasing competitive and reimbursement pressures that the V.A.C. franchise is facing, the agency said.

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