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U.S. Renal Care, Inc. Downgraded

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On June 22, 2017, Moody’s Investors Service downgraded the ratings of U.S. Renal Care, Inc., including its corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, its senior secured first lien credit facilities to B2 from B1 and its senior secured second lien credit facility to Caa2 from Caa1. According to Moody’s, the downgrade reflects weak operating performance and Moody’s belief that U.S. Renal will be unable to meaningfully reduce its financial leverage over the near-to-intermediate term. Moody’s anticipates that U.S. Renal will face near-term operational headwinds due to rising clinic costs, commercial pricing pressures, and a mix shift towards government payors, which will limit earnings and cash flow growth. Read more on distressed companies.