S&P rates GHX loan B

S&P said it affirmed the B corporate credit rating on Global Healthcare Exchange LLC.

The outlook is stable.

The agency also said it assigned a B corporate credit rating to GHX Ultimate Parent Corp., a parent company of operating subsidiary Global Healthcare Exchange.

S&P said it subsequently withdrew the corporate credit rating on Global Healthcare Exchange.

The agency also said it assigned a B rating and 3 recovery rating to GHX's proposed $518 million first-lien credit facilities, which include a $30 million revolving credit facility and $488 million term loan.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

The proceeds will be used to fund Temasek's purchase of a majority stake in the company, including repaying Global Healthcare Exchange's current debt, S&P said.

The agency said it expects to withdraw the existing issue-level rating on Global Healthcare Exchange's debt once it is repaid.

Despite an increase in leverage, S&P said it affirmed the ratings on Global Healthcare Exchange because it continues to expect the company will generate moderate free cash flow.

The agency also said it expects revenue and EBITDA to grow at a relatively rapid rate due to upselling services to core exchange members and operating leverage.

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