S&P rates Mednax notes BBB-

S&P said it assigned its BBB- issue-level rating to Mednax Inc.'s announced offering of $750 million senior unsecured notes due 2026.

The company will use proceeds to repay the outstanding balance on its unsecured revolving credit facility, in a leverage-neutral transaction.

The agency said the BBB- issuer credit rating on Mednax continues to reflect the company's leading market share as a neonatology provider, its position as a major provider in the very fragmented anesthesiology subsector and its growing presence in the radiology subsector.

S&P said it expects Mednax to generate sizable cash flow and use proceeds from upcoming asset sales as well as some free cash flow to reduce debt, resulting in steady deleveraging over the next two years.

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