Moody’s changes MedImpact to positive

Moody's Investors Service said it changed the outlook of MedImpact Holdings, Inc. to positive from stable.

At the same time, Moody's affirmed MedImpact's existing ratings, including the B3 corporate family rating, B3-PD probability of default rating and the Caa2 ratings on its $160 million senior secured notes and $230 million senior secured notes.

"MedImpact's leverage remains relatively high following the 2013 acquisitions of ScriptSave and Apex Affinity, but leverage is likely to moderate as the company realizes growth in script volume and EBITDA," Moody's vice president and senior credit officer Diana Lee said in a news release.

Moody’s said the outlook change reflects its belief that MedImpact will sustain good retention rates and new customer wins. The positive outlook further reflects Moody's view that MedImpact is not likely to engage in debt-financed acquisitions over the next 12 to 18 months and instead, will continue to deleverage, benefiting from improved profitability and cash flow.

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