Moody’s views FINThrive negatively

Moody's Investors Service said it affirmed FINThrive Software Intermediate Holdings, Inc.'s B3 corporate family rating and changed the outlook to negative from stable. The agency also affirmed the B3-PD probability of default rating, the B2 first-lien senior secured instrument ratings and the Caa2 second-lien senior secured instrument rating.

“The outlook change to negative from stable reflects Moody's expectation the company will be challenged to generate positive free cash flow and reduce leverage. Moody's expects that rising benchmark rates will increase FinThrive's interest expense burden substantially over the next 12-18 months, which will result in negative operating cash flow. The company operates in a competitive revenue cycle management (RCM) market segment and will need to achieve higher revenue growth and improve profitability to offset the increasing cost of debt,” the agency said in a press release.

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