S&P: HCR HealthCare view to developing

S&P said it affirmed the B- corporate credit rating on HCR HealthCare LLC and revised the outlook to developing from stable.

The agency also said it affirmed the B rating and the B rating on its term loan.

The 2 recovery rating on this debt indicates 70% to 90% expected default recovery.

The outlook revision follows news that HCR HealthCare’s lessor, HCP Inc., is spinning off its skilled nursing and assisted living facility portfolio into an independently run publicly traded REIT with HCR HealthCare expected to operate the overwhelming majority of the facilities, S&P said.

The developing outlook reflects the uncertainties related to the outcome of the proposed lease restructuring and whether the term loan obligation will be adversely modified during these negotiations, the agency said.

© 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.