Moody’s rates AAC CFR, facilities B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to AAC Holdings, Inc.

At the same time, the agency assigned a B3 rating to AAC's proposed senior secured first-lien credit facilities.

Proceeds will be used to refinance existing debt.

Moody's also assigned a speculative grade liquidity rating of SGL-3, signifying adequate liquidity over the next 12 months.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects AAC's small absolute size compared to other rated healthcare providers, and relatively high financial leverage. The ratings are also constrained by risks associated with the company's rapid expansion strategy and its track record of negative free cash flow, the agency added.

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