Moody's: Matria outlook stable

Moody's Investors Service said it completed the rating review initiated on April 29 of Matria Healthcare Inc. and confirmed all of Matria's ratings and revised the outlook to stable.

Ratings confirmed include Matria's $86.25 million convertible senior subordinated notes due 2024 at B3, senior implied rating at B1, and senior unsecured issuer rating at B2.

Moody's had originally placed the company under review as a result of the company's weak first quarter 2004 performance and because of the potential increase in leverage that may have resulted from the company's plan to refinance its $122 Million 11% senior notes due 2008.

Since then, the company has sold its pharmacy and supplies business and has used proceeds to reduce debt. As a result of the sale, the company has only $88 million of debt as opposed to the $150 million that was anticipated at the time of the convertible notes offering in April 2004. In addition, the company's performance rebounded strongly in the second quarter of 2004.

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