Envision Healthcare (EVHC) Acquisition Announcement is Credit-Negative Event - Moody's

Moody's Investors Services said that Envision Healthcare Corporation's (NYSE: EVHC) ("Envision") announcement that it has entered into two separate agreements to acquire Emergency Medical Associates of Parsippany, New Jersey and Scottsdale Emergency Associates of Phoenix, Arizona is credit negative. The combined purchase price is $380 million. Although the transaction has the potential to benefit Envision with an expanded physician base, it is credit negative in the near term because we expect a modest increase in leverage and a temporary reduction in available liquidity following the use of its revolver and a significant portion of its cash to fund the transaction. However, the announcement does not currently impact Envision's ratings, including the B1 Corporate Family Rating and B1-PD Probability of Default Rating. The positive rating outlook is also unchanged.

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