S&P cuts Community Health Systems

S&P said it lowered its corporate credit rating on Community Health Systems Inc. to CCC- from CCC+ and placed the rating on CreditWatch with negative implications.

At the same time, the agency lowered the rating on the company's unsecured notes due 2022 to C from CCC- and placed the rating on CreditWatch with negative implications.

The senior secured first-lien rating remains B- with a recovery rating of 2 and the rating on the unsecured debt, with the exception of the unsecured notes due 2022, remains CCC- with a recovery rating of 6.

The senior unsecured and related recovery ratings are unchanged.

Community Health Systems announced three tender offerings totaling $3.125 billion.

“Although the maturities in 2019 and 2020 are tendered at par and we would not consider those exchanges as distressed, the 2022 maturities are offered for exchange at a material discount to par, which we would view as a distressed transaction and selective default if those notes are included in the tender,” S&P said in a news release.

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