Moody's rates OnCURE, notes B2

Moody's Investors Service said it assigned new ratings to OnCURE Holdings, Inc., including corporate family and probability of default ratings at B2 and a B2 rating to the company's proposed $210 million of senior secured notes.

The outlook is stable.

The proposed $210 million senior secured notes along with a $40 million senior secured revolving credit facility (not rated) are primarily being used to refinance the company's existing credit facilities and subordinated debt, the agency said.

According to Moody's, the proposed $210 million senior secured notes will have a second-lien on all assets and the $40 million senior secured revolving credit facility has a first-lien on all assets.

The B2 corporate family rating reflects the company's substantial debt leverage and modest interest coverage, limited scale and lack of geographic diversity, risk associated with acquisition based growth strategy, and reliance on Medicare, the agency said.

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