FINThrive Software Intermediate Hldgs, Inc.: Update to credit analysis following downgrade to Caa2 and limited default designation

Moody's downgrades FinThrive's CFR to Caa2 from Caa1 and appends limited default following discounted debt repurchases; outlook remains negative - Rating Action – 2023/12/04 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

FINThrive Software Intermediate Hldgs, Inc.: Update to credit analysis following downgrade to Caa1 - Credit Opinion – 2023/05/30 – US$ 250.00 – ...The credit profile for FinThrive, a Georgia-based healthcare revenue cycle management and software-as-a-service (Saas) solutions provider, is hindered by very high financial leverage with debt/EBITDA over 12x as of 31 December 2022 (Moody's-adjusted, excluding preferred equity, net of capitalized software expenses and after giving partial credit to one-time items that the company considers non-recurring). Weaker than anticipated operating performance and negative free cash flow weigh on the ratings and increase the risk of default or debt restructuring. Rising interest rate benchmarks have contributed to a substantial increase in interest expense, leading to our expectation for free cash flow deficits and diminishing liquidity. Ongoing integration risks following recent transformative M&A also weigh on the credit profile. A short operating history and high cost add-backs result in limited visibility into the long-term profitability and cash flow profile of the going concern, which elevates...

Moody's downgrades FinThrive's CFR to Caa1 from B3 on deteriorating liquidity expectations; the outlook is negative - Rating Action – 2023/05/26 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

FINThrive Software Inter Hldg, Inc.: Update to credit analysis following change in outlook to negative from stable - Credit Opinion – 2022/11/15 – US$ 250.00 – ...FinThrive's highly levered capital structure, with roughly $1.9 billion of floating debt, will result in a hefty increase in interest expense as benchmark rates climb, which prompted our change in outlook to negative from stable. Pro forma leverage as of June 2022 is very high, above 10x (Moody's adjusted, excluding preferred equity, net of capitalized software expenses and after giving partial credit to margin improvement initiatives). We expect free cash flow to remain negative over the next 12-18 months, as Libor approaches 5%. Large pro forma EBITDA add-backs and a short operating history result in limited visibility into the long-term profitability and cash flow profile of the going concern, which elevates risks. While we expect strong long-term EBITDA margins, above 40% (Moody's adjusted before capitalized software costs), the company's ability to delever and generate positive free cash flow will be challenged if operating results are weaker than expected or interest rate benchmarks...

Moody's affirms FinThrive's B3 CFR; changes outlook to negative on deteriorating free cash flow expectations - Rating Action – 2022/11/15 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...