S&P rates HCA notes BB, B-

Standard & Poor's said that it assigned HCA Inc.'s proposed $500 million of senior notes due 2020 a BB issue-level rating with a 1 recover rating, indicating a very high (90% to 100%) recovery for lenders in the event of a payment default.

S&P assigned a rating of B- to HCA's proposed $500 million of senior notes due 2022 and a recovery rating of 6, indicating a negligible (0% to 10%) recovery for lenders in the event of a payment default.

The company plans to use the proceeds to refinance a portion of its existing second-lien debt.

The ratings on HCA reflect uncertain prospects for third-party reimbursement, its highly leveraged financial risk profile and its historically aggressive financial policies, the agency said.

The ratings also reflect recent weakness in earnings, influenced by an adverse shift in service mix to less acute medical cases, the agency added.

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