Moody's downgrades FinThrive's CFR to Caa1 from B3 on deteriorating liquidity expectations; the outlook is negative

FINThrive Software Intermediate Hldgs, Inc.: Update to credit analysis following downgrade to Caa2 and limited default designation - Credit Opinion – 2023/12/04 – US$ 250.00 – ...The credit profile of FinThrive, a US-based revenue cycle management (RCM) software provider, reflects its sizeable debt burden with debt/EBITDA leverage over 12x for the 12 months ending 30 September 2023 (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, including organic revenue declines, and negative free cash flow weigh on the ratings and increase the risk of default. We regard FinThrive's second-lien debt repurchases at a steep discount as a limited default because of the substantial losses it implies to lenders. The company could pursue incremental repurchases to reduce its financial leverage at the expense of creditors. Revenue remains small relative to other healthcare software providers in a competitive market. The substantial increase in interest rates over the last two years exacerbates the lack of revenue...

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...

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...

Moody's affirms MedAssets' B3 CFR following announcement of TransUnion Healthcare acquisition and financing structure; outlook is stable - Rating Action – 2021/11/09 – 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...