Moody’s reviews Surgical Care

Moody's Investors Service said it placed the ratings of Surgical Care Affiliates, Inc. under review for upgrade, including the B1 corporate family rating and B1-PD probability of default rating.

This action follows the announcement that UnitedHealth Group Inc.'s (A3 negative) Optum entered into a definitive agreement to acquire Surgical Care in a transaction valued at about $3.2 billion including debt.

The agency also affirmed the speculative grade liquidity rating of SGL-2 due to the company’s significant revolver availability, consistently positive free cash flow and good cushion under its covenants.

The transaction is expected to close during the first half of 2017, subject to regulatory review and customary closing conditions.

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