Moody's upgrades United Surgical Partners, rates loan Ba2

Moody's Investors Service said it assigned a rating of Ba2 to the proposed $200 million senior secured term loan B due 2013, for USP Domestic Holdings, Inc., a wholly owned subsidiary of United Surgical Partners International, Inc., the parent company.

Concurrently, Moody's said it upgraded the corporate family rating of United Surgical Partners Holdings, Inc. to Ba2 from B1 and moved it to USP Domestic Holdings. Moody's also upgraded the rating on the $150 million senior subordinated notes due 2011 at United Surgical Partners Holdings to Ba3 from B3.

The outlook for USP Domestic Holdings has been changed to stable.

The assignment of a Ba2 rating to the proposed $200 million senior secured term loan and the upgrade in the corporate family rating reflects the improved financial profile of the company both on a standalone basis and on a consolidated basis including the recent Surgis acquisition, the agency said.

More specifically, the ratings primarily reflect the following factors: strong cash-flow generation capabilities and correspondingly moderate leverage; strong interest coverage; and a sound business model.

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