Moody’s upgrades LHP, debt

Moody's Investors Service said it upgraded LHP Hospital Group, Inc.'s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD, and the senior secured debt rating of operating subsidiary LHP Operations Co., LLC to B2 from B3.

The outlook is stable.

Moody’s said the upgrade reflects its expectation of improving operating performance over the next 12 to 18 months. In the agency’s opinion, cost savings initiatives and the divestiture of an unprofitable facility will contribute to EBITDA growth and improvement in credit metrics.

Additionally, Moody's anticipates that a decrease in capital spending, as LHP has completed many of its large capital projects, will benefit cash flow and contribute to a stronger liquidity profile.

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