S&P rates HCA notes BBB-

S&P said it assigned a BBB- rating and 1 recovery rating to HCA Inc.'s multi-tranche proposed senior secured notes.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The transaction is leverage neutral as proceeds from the new debt will be used to refinance existing debt and extend HCA's maturity schedule, S&P said.

The BBB- rating on the notes is one notch higher than the corporate credit rating, the agency said.

The BB+ issuer credit rating on the parent company, HCA Healthcare Inc., continues to reflect the company's substantial scale, diversified business mix and market presence, which favorably distinguish it from other investor-owned health care services companies, S&P said.

The ratings also reflect a belief that HCA will likely maintain leverage comfortably lower than 4.5x, though it will use the majority of its internally generated free cash flow and some debt capacity for share repurchases and acquisitions, the agency said, rather than for permanent debt reduction.

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