S&P: CCHN unchanged by changes to deal

S&P said the ratings on CCHN Group Holdings Inc. are not affected by announced changes to an upcoming deal structure.

The corporate credit rating remains at B with a stable outlook and the rating on the company's senior secured credit facility is B.

The recovery rating on this debt remains at 3, indicating 50% to 70% expected default recovery.

But because the company now is issuing $40 million less debt than previously expected, S&P said it now believes that senior secured lenders would generate modestly better recovery in a default scenario.

The ratings continue to reflect the company's very narrow operating focus with almost all of its revenues derived from health assessments for Medicare Advantage plans, the agency said.

For this reason, S&P said it views regulatory risk from the U.S. Center for Medicare and Medicaid Studies as a key credit risk.

Any changes to the required frequency of health assessments or regulatory changes that increased costs to Matrix or its customers could have a meaningful impact on operating results, the agency said.

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