Moody’s revises Zest view to stable

Moody’s Investors Service said it revised Zest Acquisition Corp.’s outlook to stable from negative.

“The revision in the outlook to stable reflects Moody’s expectation that Zest will be able to successfully navigate through ongoing challenges related to Covid-19. Following the cancellation of most dental visits in March and April associated with Covid-related lock-downs, patient volumes have returned, with some markets showing a return to pre-Covid levels. As a result, revenues and EBITDA have stabilized, as evidenced by third-quarter revenues, which showed modest year-over-year growth. Moody’s expects adjusted debt/EBITDA to decline towards 7x in the next 12-18 months. Zest has demonstrated an ability to manage its cost structure and cash flow in a challenging environment, resulting in sustained liquidity,” Moody’s said in a press release.

The agency affirmed the B3 corporate family rating, B3-PD probability of default rating, the B2 first-lien credit facilities ratings and the Caa2 second-lien credit facility rating.

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