Moody’s cuts Global Medical senior secured rating

Moody’s Investors Service said it downgraded Global Medical Response Inc.’s senior secured debt rating to B2 from B1. The company plans to upsize its senior secured loan by $130 million and its senior secured notes due 2025 by $240 million.

“The downgrade of the first-lien term loan reflects the proposed change in the company’s capital structure. The company will increase the senior secured debts due 2025 by $370 million and use the proceeds to retire the $370 million unsecured notes due 2023. The downgrade of the company’s senior secured debt rating reflects the increase in expected loss, as the level of cushion provided by the junior unsecured capital will be reduced,” Moody’s said in a press release.

Moody’s said it also affirmed Global Medical’s corporate ratings, including its B2 corporate family rating, B2-PD probability of default rating and Caa1 rating of unsecured term loan and unsecured notes because it views the transaction as leverage neutral.

The outlook is stable.

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