Moody’s cuts Correct Care Solutions, facilities

Moody's Investors Service said it downgraded Correct Care Solutions Group Holdings, LLC's corporate family rating to Caa2 from Caa1, probability of default rating to Caa2-PD from Caa1-PD and senior secured first-lien bank credit facility ratings to Caa1 from B3.

At the same time, the agency affirmed the senior secured second-lien term loan at Caa3.

The outlook is negative.

Moody’s said the action reflects the company's continued operating performance weakness, attributable to rising pharmacy costs, higher offsite expenses and contract labor and recruiting costs.

The company is also incurring higher costs associated with upgrading its accounting and financial staff in support of remediation efforts to address material internal control weaknesses and deficiencies.

The downgrade also reflects the agency’s concerns related to the company's weak liquidity profile.

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