S&P affirms HCA

Standard & Poor's said it affirmed its issue-level ratings on HCA Inc.'s $22.5 billion secured financing, while revising its recovery rating on the company's second-lien debt. The recovery rating on HCA's first-lien debt remains unchanged.

The loan rating on the $5.7 billion second-lien debt was affirmed at BB- (one notch higher than the B+ corporate credit rating) and the recovery rating was revised to 2, indicating substantial 70% to 90% recovery in the event of a payment default, from 1.

The loan rating on the $16.8 billion first-lien debt was affirmed at BB (two notches higher than the corporate credit rating), and the recovery rating on this debt remains at 1, indicating that lenders can expect very high recovery of 90% to 100% in the event of a payment default. The likelihood of default for the issues is reflected in the issuer corporate credit rating of B+/Negative/--, which has not changed.

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