S&P downgrades Quorum Health

S&P said it lowered the issuer credit rating on Quorum Health Corp. to CCC+ from B-.

The agency also said it lowered the rating on Quorum's senior secured debt to CCC+ from B-, along with the rating on its unsecured debt to CCC- from CCC.

The 3 recovery rating on the senior secured debt and 6 recovery rating on the unsecured debt are unchanged.

Quorum is focused on an aggressive turnaround plan to rationalize its portfolio, improve the operating performance of the facilities it is retaining and reduce its debt leverage, S&P explained.

The agency said it believes believe the company's ability to refinance its capital structure hinges on the success of this plan.

The downgrades also reflect a decreased confidence in the company's ability to successfully refinance its capital structure and achieve material interest-cost savings given the weak operating trends, S&P said.

The agency said it expects the company will face some difficulty in divesting the underperforming hospitals.

The stable outlook reflects a belief that the company's liquidity position will remain solid, S&P said.

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