S&P rates CHS/Community notes B-

S&P said it assigned its B- rating to Community Health Systems Inc.'s proposed $1.02 billion senior secured notes due 2025, issued by subsidiary CHS/Community Health Systems Inc. The recovery rating is 2, indicating the expectation for substantial (70%-90%, rounded estimate: 70%) recovery to debtholders in the event of payment default. The new debt would refinance existing secured indebtedness due in 2021, which carried the same rating.

“Our other ratings on Community, including the CCC+ issuer credit rating and negative outlook, are not affected and continue to reflect our view that the company may not be able to support its current level of debt over time, as well as the risks that the company cannot improve its operations such that cash flow is about break-even, limiting the risk of further debt restructuring,” said S&P in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.