Moody's confirms Community Health

Moody's Investors Service said it confirmed the existing ratings of Community Health Services, Inc. including the B1 corporate family and probability of default ratings. The confirmation of the ratings concludes the review for possible downgrade that was initiated on Dec. 10, 2010.

The outlook is negative.

Moody's affirmed the company's speculative-grade liquidity rating at SGL-1 reflecting the expectation that the company will continue to have very good liquidity.

Community's Health's senior secured revolving credit facility due 2013, senior secured term loans due 2014 and senior secured term loan due 2017 are rated Ba3 (LGD 3, 32% from 33%) and its 8 7/8% senior notes due 2015 are rated B3 (LGD 5, 85% from 86%).

The ratings reflect the expectation that leverage will remain high for the rating category and interest expense coverage will continue to be modest as well as that the opportunity to reduce leverage with free cash flow generation will be constrained in the near term given the company's guidance for higher capital spending related to replacement hospitals and IT spending, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.