Moody’s cuts Physician Partners

Moody's Ratings said it downgraded the ratings of Physician Partners LLC (Better Health Group) including the corporate family rating to Caa2 from B2 and the probability of default rating to Caa2-PD from B2-PD.

Moody's also downgraded the rating of Better Health Group's backed senior secured first-lien credit facilities to Caa2 from B2.

The outlook is stable.

“The downgrade of Better Health Group's ratings reflects worsening operational performance and a significant increase in leverage, which increased from 5.1x as of September 30, 2023, to 7.9x by the end of fiscal year 2023,” the agency said in a news release.

“This increase in financial leverage is primarily due to a rise in operating expenses, which include an increase in medical claims costs linked to the capitated plans, and higher labor costs.”

© 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.