Fitch assigns Waystar B-, loan B+

Fitch Ratings said it assigned a long-term issuer default rating to Navicure, Inc. (Waystar) of B- with a stable outlook.

Fitch also assigned a senior secured first-lien term loan rating of B+/RR2.

“Fitch expects Waystar to experience consistent mid- to high-single-digit organic growth through the forecast horizon as a result of strong secular trends in U.S. healthcare spending and utilization. The Centers for Medicare and Medicaid Services (CMS) forecasts national health expenditure growth of 5.6% per annum through 2026 due to long-standing trends, including an aging demographic, medical procedure/drug cost inflation and utilization growth,” the agency said in a press release.

Waystar plans to acquire eSolutions in a deal financed with $810 million of new debt with the remainder provided by the company’s sponsors.

“Fitch calculates initial pro forma leverage of 9.1x, well above the 6.25x and 5.6x median for technology issuers in the B category and for Fitch-rated healthcare IT issuers, respectively. Fitch forecasts a decline in leverage to 7.4x over the ratings horizon and expects limited deleveraging thereafter,” the agency said in a press release.

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