S&P rates MultiPlan loan B

Standard & Poor's said it assigned a B rating and recovery rating of 3 to MultiPlan Inc.'s new $1.265 billion term loan B due 2017. The recovery rating of 3 indicates 50% to 70% recovery in a default.

The agency also affirmed all of the other ratings on MultiPlan, including its B counterparty credit rating.

The outlook remains stable.

The company is using the full proceeds of the new term loan to repay its existing term loan and pay for associated fees and expenses, the agency said.

The new term loan carries a lower interest rate than the existing term loan and has similar terms otherwise, S&P said. Its debt refinancing does not affect its overall credit profile, S&P said.

The speculative grade ratings reflect its highly leveraged financial risk profile, the agency said.

Partly offsetting this negative factor is MultiPlan's relatively stable competitive position and improved scale, S&P said.

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