Moody’s lowers WD Wolverine

Moody's Investors Service said it downgraded WD Wolverine Holdings, LLC's corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

WD Wolverine Holdings is the borrowing entity for WellDyneRx, a privately held pharmacy benefit manager, Moody’s said.

The company's first-lien bank credit facilities also were downgraded to B3 (LGD 3) from B2 (LGD 3) and its second-lien term loan to Caa3 (LGD 5) from Caa2 (LGD 5).

The outlook is stable.

The proceeds from this offering are intended to partially finance Carlyle Group's pending acquisition of WellDyneRx from WellDyne Holding Corp., the agency explained.

The downgrades reflect concerns that WellDyneRx's profitability is not as strong as originally anticipated when the initial ratings were assigned in September 2016, Moody’s said.

As a result, the agency said it believes there is greater uncertainty associated with the company's ability to achieve its original forecasts.

WellDyneRx's ratings reflect the company's very high leverage, short history of marketing itself as a full-service pharmacy benefit manager and its small size relative to peers, Moody’s said.

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