Moody's downgrades Synarc-BioCore

Moody's Investors Service said it downgraded Synarc-BioCore Holdings, LLC’s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, $40 million revolving credit facility and $235 million first-lien term loan to B2 (LGD3) from B1 (LGD3) and $100 million second-lien term loan to Caa2 (LGD5) from Caa1 (LGD5). The outlook is stable.

The company does business as BioClinica. It was formed in early 2014 by the merger of BioClinica, Inc. and CCBR-Synarc. The agency said the downgrade reflects revenue and EBITDA post-closing that is meaningfully below its expectations. The weak financial performance has resulted in adjusted debt to EBITDA that no longer supports the B2 rating.

The B3 rating is constrained by BioClinica's small absolute size and its significant revenue and backlog concentration by customer and therapeutic area, Moody’s said.

The ratings are supported by the company's leadership position in the specialized niche of outsourced imaging services for clinical trials, the agency said.

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