Moody's gives Community Health notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to CHS/Community Health Systems, Inc.'s new senior secured first-lien notes. The agency noted there are no changes to Community's other ratings, including its Caa1 senior secured first-lien ratings, Caa3 senior secured junior notes ratings and its Ca unsecured notes rating.

Proceeds will be used to repay the company's 8 5/8% senior secured first-lien notes due January 2024. “Moody's views this leverage-neutral transaction as being credit positive, because it will reduce Community's near-to-intermediate term refinancing risk while also likely providing some interest expense savings,” the agency said in a press release.

The outlook remains stable.

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