Moody's may cut SFBC

Moody's Investors Service said it placed the ratings of SFBC International under review for possible downgrade following the resignation of several key employees, continued government inquiries and investigations into its business practices, and the impact of the adverse publicity on its core business.

Moody's noted that the company has lowered its earnings forecasts to reflect higher ongoing legal expenses and the cancellation of existing and new contracts.

Affected ratings include the senior secured credit facilities at B2 and corporate family rating at B2.

The ratings also reflect the challenges of managing a business that has grown rapidly through acquisitions over the past few years, the integration risk associated with the PharmaNet transaction, the decentralization of the company's operations and systems, its smaller size relative to larger competitors and high geographic concentration of business in the United States and Canada, the agency said.

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