S&P elevates HCA Healthcare

S&P said it raised its corporate credit rating on HCA Healthcare Inc. to BB+ from BB. The outlook is stable.

In addition, S&P said it raised its rating on the company's senior unsecured debt to BB- from B+ to reflect the higher corporate credit rating. The 6 recovery rating remains unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a payment default.

S&P affirmed its BBB- issue-level rating on HCA's secured debt, as S&P typically limits upward notching on debt issued by credits in the BB+ rating category to one notch. The 1 recovery rating indicates an expectation for very high recovery (90%-100%; rounded estimate: 90%) in the event of a payment default.

“Our ratings upgrade reflects our view that the company's credit profile is more consistent with that of BB+ peers following continued EBITDA growth, consistent, substantial free cash flow generation, and leverage in the very low-4x range,” S&P said in a news release.

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