Moody's reviews Novacare

Moody's Investors Service said it placed on review for possible downgrade Novacare Solutions Partnership's A1 senior secured rating.

Novacare Solutions Partnership, together with Novacare Services Pty Ltd., has contractual arrangements with the State of New South Wales to redevelop and operate the Mater Hospital precinct in Newcastle, Australia under a Public-Private-Partnership structure.

"The review for possible downgrade is prompted by Moody's receiving notice that a possible breach of covenants has occurred under the issuer's finance documents," said Nicola O'Brien, a Moody's vice president and senior analyst, in a news release.

According to Moody's the breach occurred due to an intercompany loan between Novacare Solutions Partnership and Novacare Services Pty Ltd.

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