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Moody's affirms DaVita's ratings on deal to sell DaVita Medical Group

Moody's affirmed all ratings of DaVita Inc., including its Ba2 corporate family rating and Ba2-PD probability of default rating.

The rating agency also affirmed the company's SGL-1 speculative grade liquidity rating, signifying very good liquidity.

The outlook is stable.

Moody's said the affirmations follow the company's announcement that it is selling its unit DaVita Medical Group to UnitedHealth Group Inc.'s Optum Group for $4.9 billion in cash.

The affirmation reflects the agency's view that the cash flow of the company will remain highly stable despite the modest loss of scale and diversity from the deal.

DaVita's Ba2 corporate family rating reflects its considerable scale and extensive network of dialysis outpatient clinics, strong free cash flow and very good liquidity, according to Moody's.

The stable outlook represents the agency's view that the company will use some of the cash proceeds from the deal to repay debt.