S&P gives Rede D’Or notes BB

S&P said it assigned a BB issue-level rating to Rede D’Or Finance Sarl's proposed senior unsecured notes between $300 million and $500 million with an intermediate tenor between 7 and 10 years.

The agency also assigned a recovery rating of 4 to the proposed notes, which indicates an expectation for average recovery of 30%-50% (rounded 40%).

Rede D’Or Sao Luiz SA will fully and unconditionally guarantee the notes, and use the cash proceeds for general corporate purposes, including financing its capital expenditures plan and increasing liquidity, and eventually prepaying existing debt, which will extend its debt maturity profile.

S&P said the issue-level rating is based on the corporate credit rating on Rede D'Or, which reflects a view of the company's leading position in the private hospital segment in Brazil.

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