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.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.