Moody’s might cut Heartland Dental

Moody’s Investors Service placed the ratings of Heartland Dental, LLC under review for downgrade.

The agency said the action follows the announcement that KKR will acquire a majority interest in the company from Ontario Teachers' Pension Plan. The transaction is expected to close in the second quarter of 2018.

While financing details have not been provided, Moody's said it believes the company will have higher financial leverage following the leveraged buyout.

“Excluding the announced acquisition by KKR, Heartland's B3 corporate family rating reflects the company's high financial leverage, aggressive growth strategy and modest interest coverage,” Moody’s said in a news release.

“The rating is supported by Heartland's position as the largest dental support organization in the U.S., good diversity across services and geographies, and the favorable trends within the dental support services industry.”

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