S&P: Community Care loan B

S&P said it assigned a B corporate credit rating to CCHN Group Holdings Inc.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to Community Care Health Network LLC's proposed $248 million senior secured credit facility consisting of a $10 million revolving credit facility and a $238 million term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

CCHN Group, which does business as Matrix Medical Network, provides comprehensive health assessments and chronic care management services to customers across 37 states, S&P explained.

The company's customers, which consist primarily of Medicare Advantage plans, contract with Matrix to provide health assessments to ensure accurate data on patient health conditions, which drives higher reimbursement to compensate plans that enroll sicker and at-risk patients, the agency said.

The size of the company’s network is a key competitive advantage as prospective new entrants would need to recreate this provider network to enter this business, S&P said.

But the ratings also consider the company’s narrow focus with almost all of its revenues derived from health assessments for Medicare Advantage plans, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.