Moody's confirms Capella

Moody's Investors Service said that it confirmed Capella Healthcare, Inc.'s corporate family rating of B2, concluding the ratings review that was initiated on Nov. 27.

The agency said that the ratings review was initiated following the announcement that Capella would acquire nine hospitals from Community Health Systems, Inc. for $315 million.

Moody's said it also assigned new ratings to the proposed first and second-lien credit facilities.

The ratings continue to be constrained by the acquisitive nature of the company and the significant execution and integration risk associated with the transformational nature of the currently proposed transaction, Moody's said, noting that it believes these risks are magnified by the high pro forma financial leverage of the company.

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