Moody's Investors Service ("Moody's") today downgraded the ratings on Envision Healthcare Corporation ("Envision"), including the corporate family rating ("CFR") to Caa2 from B3 and probability of default rating to Caa2-PD from B3-PD. The rating agency also downgraded Envision's instrument ratings, including the ABL facility rating to B1 from Ba2, the ratings on the senior secured revolving credit facility and term loan to Caa1 from B2, and the rating on the unsecured notes to Ca from Caa2. The downgrade of the CFR to Caa2 reflects significant volume declines across Envision's physician staffing subspecialties and ambulatory surgery centers (ASCs) that will weaken earnings and liquidity.

Moody's Investors Service ("Moody's") commented that it appended an "/LD" designation to Envision Healthcare Corporation's ("Envision") Caa2-PD Probability of Default Rating (PDR) to reflect a limited default resulting from its recently completed debt exchange. There is no change to the ratings of Envision, including the Corporate Family Rating at Caa2, the Probability of Default Rating at Caa2-PD/LD, the ABL facility at B1, the senior secured credit facilities at Caa1, and the senior unsecured notes at Ca. Envision announced on May 1, 2020 that it has completed the previously announced debt exchange transactions that resulted in the exchange of approximately $724 million in total of both the 8.75% senior notes due 2026 and floating rate private placement notes due 2026 for approximately $395 million of new first lien senior secured term loan debt maturing 2025.

Moody's Investors Service ("Moody's") today downgraded the ratings on Envision Healthcare Corporation ("Envision"), including the Corporate Family Rating to B3 from B2 and Probability of Default Rating to B3-PD from B2-PD. The rating agency also downgraded Envision's instrument ratings, including the ABL facility rating to Ba2 from Ba1, the ratings on the senior secured revolving credit facility and term loan to B2 from B1, and the rating on the unsecured notes to Caa2 from Caa1. The downgrade of the CFR to B3 reflects Moody's view that Envision's pro forma adjusted debt to EBITDA will likely remain at or above 7 times for several quarters.

Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Envision Healthcare Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review 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. 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.

Moody's Investors Service ("Moody's") commented that it appended an "/LD" designation to Envision Healthcare Corporation's ("Envision") Caa2-PD Probability of Default Rating (PDR) to reflect a limited default resulting from its recently completed debt exchange. There is no change to the ratings of Envision, including the Corporate Family Rating at Caa2, the Probability of Default Rating at Caa2-PD/LD, the ABL facility at B1, the senior secured credit facilities at Caa1, and the senior unsecured notes at Ca. Envision announced on May 1, 2020 that it has completed the previously announced debt exchange transactions that resulted in the exchange of approximately $724 million in total of both the 8.75% senior notes due 2026 and floating rate private placement notes due 2026 for approximately $395 million of new first lien senior secured term loan debt maturing 2025.