S&P revises Iasis view to negative

S&P said it affirmed its B corporate credit rating on Iasis Healthcare Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the BB issue-level rating on the super-priority revolver, the B issue-level rating the senior secured term loan and the CCC+ issue-level rating on the senior unsecured notes. The recovery ratings on the issue-level debt remain 1+, 3 and 6, respectively.

"The rating action on Iasis follows another year of disappointing operating performance, with EBITDA down over 30% on a year-over-year basis," S&P credit analyst Shannan Murphy said in a news release.

The negative outlook reflects the agency’s view that the company has little margin for error in 2017, as it believes that Iasis will need to perform at or above the current base case in order to successfully refinance its senior notes in 2018 (before the notes become a current maturity).

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