Moody's upgrades Greenway

Moody's Investors Service said it upgraded Greenway Health, LLC's corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD. Moody's also raised the ratings on the senior secured bank credit facilities to B3 from Caa1.

“The upgrade reflects Moody's expectation of stable operating performance for Greenway following a period of customer attrition and additional expenses to ensure product compliance as part of its settlement with the U.S. Department of Justice,” the agency said in a press release.

Moody's said it forecasts the company will keep debt to EBITDA below 6.5x through profit growth coming from modest sales growth partly offset by added operating investments over the next 12 to 18 months.

“Moody's views the company's liquidity as sufficient to cover the settlement of its class action litigation. In addition, free cash flow to debt will likely improve to the mid-single-digit percentage as one-time expenses related to product investment and litigation fees roll off,” the agency said.

The outlook is stable.

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