Moody’s drops MultiPlan

Moody's Investors Service said it downgraded MPH Acquisition Holdings LLC's (MultiPlan) corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

Moody's also downgraded the ratings on the company's senior secured first-lien credit facilities and senior secured notes to B1 from Ba3 and senior unsecured notes to Caa1 from B3.

The company's speculative grade liquidity rating is unchanged at SGL-1.

The outlook remains stable.

“The ratings downgrades reflect a deterioration in operating performance in the second half of 2022 and Moody's expectations of additional pressure in 2023 and beyond from contract renegotiations with several of the company's larger customers,” the agency said in a news release.

“As such, Moody's expects financial leverage to increase from 6.4x at the end of 2022 to the mid 7x range by the end of 2023.”

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