Moody’s assigns B3 to AI Monet, loans

Moody's Investors Service said it assigned B3 corporate family and B3-PD probability of default ratings to AI Monet (Luxembourg) ParentCo Sarl, the top entity of Deutsche Fachpflege's restricted group. The agency also gave B3 instrument ratings to Deutsche Fachpflege's planned €420 million senior secured term loan B, due in 2031, and to the proposed €90 million senior secured revolving credit facility due in 2030. The outlook is positive.

“The B3 rating reflects Deutsche Fachpflege's leading position as an outpatient care provider, with a focus on the highly specialized intensive care segment in Germany, with good organic growth prospects, the supportive and mature regulatory framework, including a continued push to further increment outpatient care penetration, as the German authorities focus on reducing pressure on hospitals and in-clinic treatments, and the company's good quality track record and a proved framework to manage patient referrals, which are key to increase new patient penetration.

“Conversely, the rating is constrained by the company's weak credit metrics, with an opening Moody's-adjusted gross leverage of 7.1x for the last 12 months to September 2023, pro forma the new debt structure. Although Moody's estimates good organic deleveraging prospects towards 6x over the next 12-18 months, the rating agency estimates interest coverage (Moody's-adjusted EBITA to interest expense) of around 1.5x over the next 12-18 months and limited Moody's-adjusted free cash flow (FCF) generation of around €10 million, over the same period,” the agency explained in a statement.

The company is looking to refinance its debt and fund transaction fees and expenses, with the new loans and cash.

Moody’s said it forecasts Deutsche Fachpflege “to grow in the mid-to-high single digits in percentage terms over the next 12-18 months, driven by the company's” position in Germany’s outpatient care sector.

© 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.