Moody’s lifts MCS to stable

Moody’s Investors Service said it affirmed MCS Group Holdings LLC’s corporate family rating at B3, probability of default rating at Caa1-PD and senior secured rating at B3 (LGD 3).

The outlook also was revised to stable from negative.

MCS Group Holding was formerly known as MCS AMS Sub-Group Holdings, LLC.

MCS and its lenders have agreed to an amendment of its senior secured credit facilities, which relaxes financial covenants, among other things, Moody’s said.

The agency said it expects MCS’s debt-to-EBITDA ratio to remain about 5x.

The ratings also reflect the company’s limited free cash flow and high customer concentration, Moody’s said.

MCS has narrowed its business focus by exiting the post-foreclosure property management, the agency said.

The recent covenant amendment affords the company additional time to produce improvements in its financial results, Moody’s said.

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