Moody's rates American Renal B2, loan Ba3, notes B2

Moody's Investors Service said it assigned a B2 corporate family and probability of default rating to American Renal Holdings, Inc., assigned a Ba3 rating to American Renal's proposed senior secured revolving credit facility and a B2 rating to the company's proposed senior secured notes and assigned a speculative grade liquidity rating of SGL-2.

The outlook is stable.

Proceeds of the notes will be used, along with an equity investment of $202 million, to fund the $434 million acquisition of the company by Centerbridge Partners.

The ratings reflect the considerable financial leverage of the company following the transaction, Moody's said.

The ratings also consider the modest scale of the company and the agency's expectation that American Renal will use available cash flow to aggressively grow through the development of de novo centers.

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