Moody’s gives Gainwell Holding B3

Moody’s Investors Service said it assigned Gainwell Holding Corp., the parent and guarantor of Gainwell Acquisition Corp.’s loans, a B3 corporate family rating, a B3-PD probability of default rating and a stable outlook. Concurrently, the agency withdrew Gainwell Acquisitions’ B3 CFR and B3-PDR.

Moody’s also affirmed the B2 ratings on Gainwell’s $400 million revolving facility and $4.2 billion term loan.

“The stable outlook reflects improved visibility into the financial profile of the company, following its fiscal year 2022 results. The company was able to generate positive free cash flow and improve its profitability metrics during the 12-month period ending March 2022. The rating remains pressured by very high debt/EBITDA, around 7.3x as of fiscal 2022 (Moody's adjusted net of capitalized software costs, adding back transaction and restructuring expenses, and after giving partial credit to sizable pro forma margin expansion initiatives). Moody's expects financial leverage to moderate toward 6.5x over time, benefiting from top-line growth and margin improvement,” the agency said in a press release.

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