Moody's rates MMM loan B2

Moody's Investors Service said it assigned a final B2 senior debt rating to MMM Holdings Inc. and NAMM Holdings Inc.'s $420 million senior secured bank credit facility, which includes a $420 million six-year term loan and a $20 million five-year revolving credit facility.

The agency also affirmed MMM Holdings Inc.'s B2 corporate family rating, MMM Healthcare Inc.'s Ba2 insurance financial strength rating and PrimeCare Medical Network Inc.'s Ba2 insurance financial strength rating.

The outlook is stable.

MMM and NAMM are co-borrowers under the credit facility. MMM's proceeds include a $340 million term loan and $20 million revolver, and NAMM's portion includes a $80 million term loan. Both companies are subsidiaries of Aveta Holdings LLC, which as the parent, is the ultimate guarantor of the credit facility.

Moody's ratings are based on the expectation that there will be no changes in the methodology used by the Centers for Medicare and Medicaid Services in determining the Medicare Advantage reimbursement rates, that the companies will use 100% of excess unregulated cash for debt repayment and that the companies will issue no additional debt and maintain a consolidated RBC of at least 50% of company action level.

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