...October 14, 2022 - Peruvian private health care service provider Auna S.A.A. (Auna) recently closed its Organizacion Clinica America (OCA; not rated) acquisition. Auna funded this transaction, coupled with the 70% stake acquisition in IMAT S.A.S. and Oncomedica S.A. (both not rated) it closed earlier this year, through $405.5 million in secured bridge loans, $342 million from shareholder contributions, and $74.5 million from its own resources. - We expect pro forma adjusted gross leverage to be about 5x at year-end 2022, which is a significant deviation from our previous expectation of below 4x when we assigned the 'B+' rating. While we expect Auna to rapidly integrate the acquisitions and post stronger results in 2022, we believe that the company is exposed to both execution risks and external factors. - Moreover, although Auna is working on different alternatives for the bridge loans refinancing, the company is exposed to refinancing risks until the refinancing is completed. - As a result,...
