S&P rates AMN loan BBB-, cuts notes

S&P said it rated AMN Healthcare Inc.’s new $750 million secured revolving credit facility due 2028 BBB- with a 1 recovery rating and downgraded its senior unsecured notes. The 1 rating indicates very high recovery (90%-100%) in default. This loan will replace the current $400 million secured revolver, which had the same rating.

The agency concurrently lowered AMN’s $350 million of unsecured notes due 2029 and $500 million of unsecured notes due 2027 to B+ from BB- and revised the recovery rating to 6 from 5. The lower rating indicates negligible (0%-10%; rounded estimate: 5%) recovery on those obligations, in default.

The increased secured debt is expected to be “modestly negative” for the notes, the agency said.

The BB issuer and positive outlook are unchanged, S&P said.

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