Moody's trims GenesisCare

Moody's Investors Service said it lowered Genesis Care Finance Pty Ltd.'s corporate family rating to B3 from B2 and changed the outlook to negative from stable.

Moody's also downgraded to B3 from B2, the loans borrowed by Genesis Specialist Care Finance UK Ltd. and GenesisCare USA Holdings, Inc. Both are wholly owned subsidiaries of Genesis Care Finance.

“The downgrade reflects the ongoing effects of the pandemic on GenesisCare's leverage and liquidity,” Moody’s said in a press release. “The rising number of delta-variant cases in the United States and Australia as well as seasonal slowdowns in the U.S. have reduced the number of radiotherapy plans carried out per day. This revenue reduction, amplified by GenesisCare's high operating leverage, means the effect on EBITDA is significant. Moody's therefore expects the company's leverage will remain above 8x over the next 18 months.”

The outlook reflects the risk that the number of radio therapy treatments per day continues to be hurt by outbreaks for a longer period than expected, resulting in tighter liquidity, despite capital management initiatives, the agency said.

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