Moody's affirms MedAssets' B3 CFR following announcement of TransUnion Healthcare acquisition and financing structure; outlook is stable

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...

Moody's says nThrive's ratings are unaffected by the incremental debt issuance to finance the acquisition of PELITAS - Announcement – 2022/02/22 – US$ 180.00

MedAssets Software Intermediate Holdings: Enhanced capabilities and scale from TUHC acquisition offset by aggressive financial leverage - Credit Opinion – 2021/11/09 – US$ 250.00 – ...The credit profile reflects MedAssets' (dba "nThrive") very high debt-to-EBITDA, hefty interest expense burden, relatively small (but increasing) scale, and operational risks associated with the recent separation from Savista (nThrive's legacy services unit) and proposed integration with TransUnion Healthcare's ("TUHC") carve out. The acquisition of TUHC roughly doubles nThrive's scale and enhances its revenue cycle management ("RCM") product suite with complementary solutions that are expected to drive new growth opportunities. The combination increases the ability to compete as a comprehensive end-to-end RCM vendor, rather than a provider of point solutions. However, the transaction also increases pro forma leverage to exceptionally high levels above 10x (Moody's adjusted, net of capitalized software). The company will need to achieve sizeable operational savings and increase current growth rates to materially delever. Pro forma profitability remains uncertain. nThrive was recently separated...

MedAssets Software Inter Hldg, Inc.: Initial credit assessment - Credit Opinion – 2021/01/12 – US$ 250.00 – ...Small scale, very high Moody's-adjusted opening pro-forma debt-to-EBITDA leverage of roughly 9.4 times, and operational risks associated with carving out a technology solutions business from the broader nThrive, Inc. corporate entity constrain MedAssets' credit profile. The company's rating is also pressured by high annual product development expenses (inclusive of capitalized software development expenses), which will impede its ability to meaningfully reduce debt-to-EBITDA leverage over the next 12 months. However, MedAssets' credit profile benefits from a highly recurring revenue profile, its use of fixed- fee subscriptions to reduce revenue volatility relative to revenue cycle management ("RCM") peers, and our expectation for free cash flow generation to improve over the next 12-18 months as cash carve-out expenses roll off and product development expenses are rationalized. We view MedAssets ability to cover annual interest expense and overall cash flow relative to its debt balance...

Moody's assigns MedAssets B3 CFR, B2 first-lien ratings; outlook stable - Rating Action – 2021/01/08 – US$ 180.00 – ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that...