Moody's rates Ortho-Clinical loan B2

Moody's Investors Service said it downgraded Ortho-Clinical Diagnostics SA's senior secured bank credit facilities ratings to B2 from B1and assigned a B2 rating to the company's new $375 million-equivalent euro term loan B due 2025. Moody's affirmed Ortho's corporate family rating at B3 and the probability of default rating at B3-PD and the Caa2 ratings of the senior unsecured notes due 2022. The outlook remains stable.

Ortho intends use the proceeds to refinance a portion of its 6 5/8% dollar-denominated notes due 2022 and to pay transaction fees. The downgrade of the secured debt rating to B2 reflects the increase in secured debt and lower level of unsecured debt in the company's capital structure following these transactions

“Moody's views the proposed transaction as credit positive as it is leverage neutral, while extending Ortho's debt maturity profile and aligns the currency of its debt with that of its revenue and profits,” said Moody's vice president Jean-Yves Coupin, in a press release.

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