S&P rates HealthSpring loan BB-

Standard & Poor's said it assigned a B+ counterparty credit rating to HealthSpring Inc. S&P also assigned BB- loan and 2 recovery ratings to HealthSpring's proposed $400 million senior secured credit facility, consisting of a $300 million five-year term loan and a $100 million five-year revolver.

The outlook is stable.

Proceeds will be used to acquire Leon Medical Centers Health Plans Inc.

The rating reflects the company's limited market profile and marginal capital adequacy as well as the high level of intangibles relative to equity that will result from the pending deal, the agency said.

Partly offsetting the negative factors are the company's good earnings profile, established competitive position in its niche marketplace and focused operational skill sets, S&P said.

S&P said it expects the company's debt-to-EBITDA ratio to be about 1.2 times to 1.5 times.

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