S&P affirms CHG Healthcare debt

S&P said it affirmed its B issue-level rating on CHG Healthcare Services Inc.'s senior secured debt.

The recovery rating remains 3, indicating expectations for meaningful (50%-70%; rounded estimate: 50%) recovery in a payment default.

The company is issuing a $270 million add-on to its first-lien term loan.

“The transaction is leverage neutral, as we expect the company will use proceeds to pay down its $260 million second-lien notes,” the agency said in a news release.

S&P said the B corporate credit rating on CHG reflects the company's leading position in the highly competitive locum tenens sector.

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