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Moody's: Radiation Therapy view negative
Moody's Investors Service said it revised the outlook of Radiation Therapy Services, Inc. to negative from stable and affirmed its B2 corporate family and probability-of-default ratings as well as the B1 rating (LGD3, 33%) on its credit facility.
The change in outlook reflects expectation for reduced same-facility EBITDA over the next year as a result a meaningful decline in Medicare reimbursement, weakness in patient volumes, increased exposure to bad debt and slowing benefit from deployment of advanced technologies, according to the agency.
The B2 corporate family rating reflects Radiation Therapy's considerable financial leverage and deterioration of credit metrics following the February 2008 acquisition by Vestar Capital Partners, the agency said.
Ratings also reflect the limited absolute scale of the company as well as its concentration of revenues by payer and geography, the agency said.
Ratings are supported by Radiation Therapy's competitive position as the largest pure-play national provider of radiation therapy to cancer patients, as well as the strong underlying industry demand fundamentals, Moody's said.
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