Moody's downgrades Matrix

Moody's Investors Service said it downgraded Community Care Health Network, LLC's (Matrix) corporate family rating to B3 from B2 and probability of default to B3-PD from B2-PD. Concurrently, the agency trimmed the ratings on the $330 million senior secured first-lien term loan and the $20 million senior secured revolving credit facility to B3 from B2.

The CFR downgrade to B3 from B2 reflects Moody's expectations that revenue and profitability will deteriorate beyond our previous assumptions given the steep decline of the clinical solutions business and lack of progress in the clinical care segment. Moreover, Moody's expects Matrix's debt to EBITDA (adjusted for operating leases) to reach very high levels, likely approaching eight times through the end of 2022. This said, we expect Matrix's liquidity to be adequate with no material debt repayments until the term loan matures in 2025,” the agency said in a press release.

The outlook is stable.

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