S&P gives CHS/Community Health loan BB-

Standard & Poor's said it assigned its loan and recovery ratings to the $300 million incremental term loan facility of CHS/Community Health Systems Inc.

The loan is rated BB-, at the same level as the BB- corporate credit rating on the borrower's parent, Community Health Systems Inc., with a recovery rating of 3, the agency said, noting that the additional borrowing will refinance the outstanding balance on the company's revolving credit facility.

At the same time, S&P said it affirmed all ratings on parent company Community Health Systems (BB-/positive).

The agency noted that the rating on Community Health reflects the industry challenges that the company faces, particularly the uncertain future reimbursement it will receive from the government and other third-party payors, adding that this uncertainty is somewhat mitigated by Community Health's diversified hospital portfolio.

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