Moody’s places Medical Solutions under review

Moody's Investors Service said it placed Medical Solutions Holdings Inc.’s ratings under review for downgrade from stable, on news the company is acquiring C&A Industries.

Details on the financing haven’t been announced, but Moody’s said it sees the deal being mostly financed with debt.

“The review for downgrade assumes that the company's leverage following the acquisition will be higher than that at the end of June 2019 (approximately 5.8 times). That said, the acquisition will also add scale and diversity, partially mitigating the increased leverage,” said Moody’s in a press release.

The ratings under review are the B-2 corporate family rating, the B2-PD probability of default rating, the $350 million first-lien senior secured term loan at B1, the $55 million first-lien senior secured revolver at B1 and the $65 million second-lien senior secured term loan at Caa1.

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