Moody's snips Global Medical

Moody's Investors Service said it downgraded Global Medical Response, Inc.'s ratings, including the company's senior secured first-lien term loan, term loan and notes to B3 from B2. Moody's revised the outlook to negative from stable.

“The ratings downgrade reflects a deterioration in year-to-date operating performance as a result of persistent inflationary cost pressures on the company's earnings. Inflationary cost pressures, most notably from rising wages due to ongoing labor shortages, will result in higher operational expenses. Moody's calculates GMR's pro forma debt to EBITDA in the low 8 times range at Sept. 30, 2022. Moody's expects leverage to steadily decline as the company implements cost-saving initiatives, but to remain high at over seven times over the next 12 to 18 months,” the agency said in a press release.

The weaker outlook reflects the forecast for the persistently high leverage and that GMR will continue facing headwinds challenging its ability to upgrade operating performance and liquidity, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.