Moody's cuts Symbion

Moody's Investors Service said it downgraded the corporate family and probability of default ratings of Symbion, Inc. to B3 from B2, along with its $100 million senior secured revolving credit facility, $125 million senior secured term loan A due 2013 and $125 million senior secured term loan B due 2014 to B1 (LGD2, 26%) from Ba3 (LGD2, 28%) and its senior unsecured payment-in-kind toggle notes due 2015 to Caa2 (LGD5, 81%) from Caa1 (LGD5, 83%). Its speculative grade liquidity rating is affirmed at SGL-3.

The outlook remains negative.

The downgrade reflects an expectation that Symbion will continue to have difficulty growing EBITDA and reducing the company's considerable financial leverage given continued pressure on volumes and pricing, Moody's said.

The agency said it believes that absent a meaningful improvement in earnings and cash flow, the company will need to access the capital markets or restructure in order to address upcoming cash obligations.

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