Moody’s gives CareCentrix loans B1

Moody's Investors Service said it affirmed CareCentrix, Inc.'s B1 corporate family rating and B1-PD probability of default rating following the announced refinancing and dividend transaction.

The agency also assigned a B1 rating to CareCentrix's proposed first-lien revolver and term loan.

The outlook was changed to negative from stable.

Proceeds from the $570 million term loan and about $38 million in cash will be used to repay existing debt, pay a $423 million dividend and cover fees and expenses.

"The debt funded dividend significantly increases leverage with debt to EBITDA rising to 5.3 times from 1.7 times at September 30, 2017," Moody's assistant vice president, analyst Todd Robinson said in a news release.

"However, the affirmation reflects the company's strong earnings growth outlook, favorable industry dynamics, strong track record of business execution and moderate financial policies."

The agency expects that adjusted debt to EBITDA will decline rapidly over the next 12-18 months.

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