Moody's alters AccentCare view to negative

Moody's Investors Service said it changed the outlook to negative from stable and affirmed all of its ratings assigned to Pluto Acquisition I, Inc. (AccentCare Inc.) including the company's B3 corporate family rating, B3-PD probability of default rating and B2 ratings on the senior secured revolving credit facility and first-lien term loan.

“The change in outlook to negative from stable reflects deteriorating operating performance, partly due to persistent labor issues including wage inflation that will continue to pressure the company's EBITDA and margins, resulting in high financial leverage and a weaker liquidity position. Moody's views AccentCare's significant and constant add-backs to EBITDA as an impediment to positive free cash flow generation, especially in light of rising interest rates,” the agency said in a press release.

© 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.