S&P raises HCA, debt; rates notes B+

Standard & Poor's said it raised its corporate credit rating on HCA Inc. to BB from B+.

The outlook is stable.

At the same time, the agency assigned its B+ issue-level rating and 6 recovery rating to HCA's proposed $750 million issue of senior unsecured notes due 2025. The 6 recovery rating is the same as the recovery rating on HCA's existing unsecured debt.

S&P also raised its ratings on HCA's existing senior secured debt and senior unsecured debt to BBB- from BB to reflect the corporate credit rating upgrade. The recovery rating remains 1.

In addition, the agency raised HCA's existing senior unsecured debt to B+ from B-, which also reflects the corporate credit rating upgrade. The recovery rating on this debt remains 6.

"The two-notch upgrade to our corporate credit rating on HCA reflects the company's significant outperformance this year relative to our base-case forecasts," S&P credit analyst Shannan Murphy said in a news release.

It also incorporates the agency’s assessment that the company's business risk profile has improved, reflecting the belief that HCA's scale and diversified business mix provide a competitive advantage in negotiating contracts and managing reimbursement uncertainty over time, the release said.

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