S&P rates Kinetic notes B, CCC+

Standard & Poor's said it assigned a B senior secured issue-level rating and 4 recovery rating to Kinetic Concepts Inc.'s proposed $1.65 billion senior secured second-lien notes maturing in 2019. The 4 recovery rating reflects S&P's expectation for average recovery for second-lien senior secured lenders in the event of a payment default, the agency said.

At the same time, S&P said it assigned a CCC+ senior unsecured issue-level rating and 6 recovery rating to the company's proposed $900 million senior unsecured notes maturing in 2019. The 6 recovery rating reflects S&P's expectation for negligible recovery for senior unsecured lenders in the event of a payment default, the agency said.

S&P said the BB- issue-level rating and 1 recovery rating on the company's previously rated proposed credit facility is unchanged despite the company's intention to reduce the term loan B to $2.2 billion from its initial $2.6 billion proposal.

Kinetic Concepts' BB+ corporate credit rating is on CreditWatch with negative implications, the agency said. S&P said it originally placed the company's corporate credit rating on CreditWatch negative July 8, following reports that that the company may be subject to a takeover by a private-equity firm.

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