Moody's cuts MSC-Medical to Caa1

Moody's Investors Service said it lowered MSC-Medical Services Co.'s corporate family and probability-of-default ratings to Caa1 from B3 and the rating on $150 million second-lien notes to Caa1 (LGD3, 44%) from B3 (LGD3, 46%).

The outlook remains negative.

According to Moody's, the downgrade of the corporate family rating reflects the company's weak credit metrics, tied to the loss of the pharmaceutical benefits management contract with Liberty Mutual, its largest customer, in 2007.

The downgrade also reflects the company's weak liquidity profile, significant customer concentration and non-exclusivity of the company's contracts, the agency said.

The outlook reflects the absence of cushion under credit metrics if the company were to experience a further material loss of customers or insufficient replacement of new business, Moody's noted.

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