Growth opportunities through acquisitions; and Favorable demand and low costs associated with the home and community-based programs within the behavioral health industry. High exposure to Medicaid reimbursement; Highly leveraged; and Potential refinancing risks to contend with a material debt payment due in 2012. The ratings on Boston-based National Mentor Inc. reflect the company's significant exposure to reimbursement risk, fairly thin operating margins, and limited ability to reduce financial leverage through debt reduction given its emphasis on acquisitions. In addition, the rating also reflects major challenges to refinance in 2012 when an upcoming $98 million applicable high-yield discount obligation (AHYDO) payment on its holding company notes is due. National Mentor's vulnerable business risk profile is highlighted by the fact that over...
Companies mentioned in this report are:
- National Mentor Holdings Inc.
- NMH Holdings Inc.
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