Moody’s rates Schoen Klinik, loan B2

Moody’s Investors Service said it assigned B2 ratings to Schoen Klinik SE and its planned €350 million senior secured term loan. The agency also assigned a B2-PD probability of default rating. The outlook is positive.

Schoen Klinik’s B2 ratings reflect its projected 5.6x leverage in 2023, the agency said.

“The rating furthermore takes into account the high fixed cost base and related industry-inherent pressure on wages with necessity to retain staff that has accelerated since the coronavirus pandemic; regulatory risks related to reimbursement levels of treatments and necessity to improve quality of care and staff conditions; the limited geographic diversification; the company's opportunistic approach to acquiring new hospitals that could delay deleveraging,” Moody’s said in a press release.

The agency said it forecasts Schoen Klinik to maintain its solid profitability around 12% Moody's adjusted EBITDA in the next 12-18 months leading to continuing EBITDA-growth and push deleveraging towards 5x by the end of 2024.

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