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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of MEDNAX, Inc.
Global Credit Research - 14 Jan 2021
New York, January 14, 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of MEDNAX, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 11 January 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
MEDNAX's B1 Corporate Family Rating (CFR) reflects the company's moderately high leverage, and exposure to an evolving reimbursement and regulatory environment. Moody's expects that the impact of the company's dispute with UnitedHealth Group Incorporated (A3 long-term issuer rating) will be milder after the divestiture of the anesthesia and radiology businesses. However, the ongoing dispute nevertheless remains an overhang for the company's CFR. The company's ratings benefit from its strong market position in women's and children's health services, good customer diversity, and favorable healthcare services outsourcing market trends and good liquidity.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Business and Consumer Service Industry published in October 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Kailash Chhaya, CFA Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Jessica Gladstone, CFA Associate Managing Director Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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