Moody's trims GHD Verwaltung loans

Moody’s Investors Service said it trimmed the ratings on GHD Verwaltung GesundHeits GmbH Deutschland’s €360 million backed senior secured term loan due 2026 and the €80 million backed senior secured revolving credit facility maturing 2026 to B3 from B2.

Concurrently, the agency lowered Cidron Gloria Holding GmbH’s (GHD) corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD. GHD Verwaltung is a subsidiary of Cidron Gloria. The outlook on all ratings has been changed to stable from negative.

“The downgrade of GHD's ratings reflects the company's weaker than expected performance in 2021 in terms of organic growth, margin development and free cash flow generation. The rating was already weakly positioned, evidenced in relatively weak leverage metrics, such as Moody's-adjusted debt to EBITDA of 8.2x in 2021.

“The action also reflects Moody's expectation that credit metrics are unlikely to recover to levels commensurate with a B2 rating over the next 12 to 18 months, with leverage remaining above 6x in 2023, as well as a degree of execution risk with regards to the company's plans for improving operating efficiency and organic growth within an already challenging operating environment due to continuing pricing pressure and competitive hiring market,” Moody’s said in a press release.

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