Moody's rates Quintiles loans B1, B3

Moody's Investors Service said it affirmed Quintiles Transnational Corp.'s B1 corporate family rating and assigned a B1 to the company's proposed $900 million first-lien secured term loan B, a B1 to its proposed $250 million first-lien secured revolving credit facility and a B3 to its proposed $320 million second-lien secured term loan C. The outlook is stable.

Moody's said the affirmation reflects the company's leading position as both a pharmaceutical contract research organization and a contract sales organization, it good liquidity and a favorable business outlook for contract research organizations.

These positive factors are offset by a significant increase in leverage following recent refinancing of the capital structure and limited cash flow relative to debt, the agency said. In particular, Moody's said the ratio of free cash flow to debt resembles that of a company rated B2, leaving Quintiles weakly positioned in the B1 rating category. Qualitative factors related to financial policies and complexity also limit the rating.

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