Moody's cuts CHG Healthcare term loan to B2

Moody's Investors Service said it affirmed CHG Healthcare Services, Inc.'s B2 corporate family rating and B2-PD probability of default rating.

At the same time, Moody's downgraded CHG Healthcare Services' senior secured first-lien credit facility rating to B2 from B1 and assigned B2 ratings to the refinanced portion of the first-lien credit facility.

These actions follow the announcement of a refinancing transaction that removes second-lien debt from the capital structure and replaces it with incremental first-lien debt.

The outlook is stable.

“The downgrade of the ratings on the senior secured credit facilities reflects the elimination of a layer of loss absorption below the senior secured first-lien credit facilities, resulting from the repayment of the entire second-lien term loan. The first-lien debt will represent the preponderance of the company's obligations following the proposed transaction,” Moody’s said in a news release.

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