Moody’s nicks MyEyeDr.

Moody's Investors Service said it downgraded MED ParentCo., LP's (MyEyeDr.) ratings including the corporate family rating to Caa1 from B3, the probability of default rating to Caa1-PD from B3-PD, the first-lien credit facilities ratings to B3 from B2 and second-lien credit facilities rating to Caa3 from Caa2.

“The downgrades reflect Moody's expectation for diminished liquidity driven by deferred acquisition payments that are to be paid over the next 15 months through year-end 2023 and higher interest costs. The downgrades also reflect Moody's expectation that MyEyeDr.'s leverage will remain very high over the next 12-18 months,” the agency said in a press release.

The issuer is expected to tap its undrawn $125 million revolving credit facility during 2023 to help fund the deferred acquisition payments. “As such, Moody's forecasts lease-adjusted debt/EBITDA to remain high at about 8x at year-end 2023, including pro forma adjustments for acquisitions,” the agency said.

The outlook remains stable.

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