Moody's cuts MedAssets to SGL-3

Moody's Investors Service said it affirmed the B1 corporate family and probability-of-default ratings for MedAssets, Inc., as well as the Ba3 (LGD3, 32%) rating on its senior secured credit facilities and B3 (LGD5, 86%) rating on its unsecured notes.

Moody's lowered MedAssets' speculative grade liquidity rating to SGL-3 from SGL-2.

The outlook is stable.

The action follows the company's announcement that its board of directors approved a share repurchase plan of up to $25 million worth of the company's common stock, and the announcement that it made a $25 million voluntary prepayment on its outstanding term loan in August 2011, according to the agency.

The B1 corporate family rating reflects the company's high financial leverage, its small size relative to many other rated borrowers as well as large industry players, and its aggressive financial policies, the agency said.

Ratings also reflect the favorable business fundamentals within MedAssets' revenue cycle management and spend and clinical resource management segments, as well as the company's relatively large and geographically diverse customer base, the agency noted.

For the 12 months ended June 30, pro forma adjusted total debt to EBITDA was 5.5 times.

The revision of the company's speculative grade liquidity rating reflects the expectation that the company's liquidity will be adequate over the next 12 months, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.