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Cotiviti Corporation -- Moody's places Cotiviti's Ba3 CFR under review for downgrade after sale announcement

Moody's Investors Service ("Moody's") has placed Cotiviti Corporation's ("Cotiviti") Ba3 Corporate Family Rating ("CFR") and B1-PD Probability of Default under review for possible downgrade, as a result of the June 19th announcement that it has entered into an agreement whereby B3-rated Verscend Holding Corp. ("Verscend") will acquire Cotiviti for approximately $4.1 billion, plus Cotiviti's debt of roughly $770 million. Moody's believes that since the acquisition, which values Cotiviti at nearly 16 times its March 2018 LTM EBITDA, will likely be financed with a substantial amount of debt, Cotiviti will be subsumed within a more highly levered and lower-rated corporate entity.