S&P: CHG Healthcare loan B

S&P said it assigned a B rating to CHG Healthcare Services Inc.'s proposed first-lien term loan.

The recovery rating is 3.

The pricing on the first-lien loan will move to Libor plus 325 basis points from LIBOR plus 375 basis points.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The corporate credit rating on CHG Healthcare is B and the outlook is stable.

The ratings reflect the company's weak business risk profile, highlighted by the company's operating concentration in the highly competitive health care staffing industry, S&P said.

The company's business mix benefits from significant exposure to the locum tenens business, which are viewed as having greater stability of demand and supply than the allied health and travel nurse segment, the agency said.

The ratings also consider the company's highly leveraged financial risk profile, which incorporates an expectation that adjusted leverage will remain at higher than 5x over the next few years.

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