Moody's rates CHS/Community notes B2

Moody's Investors Service said it assigned a B2 rating to CHS/Community Health Systems, Inc.'s new senior secured notes due 2030.

There are no changes to Community's other ratings, including its B2 senior secured first-lien ratings, or the Caa2 ratings to its senior secured junior notes ratings and senior unsecured notes. There is also no change to Community's speculative grade liquidity rating of SGL-2, Moody’s said.

The proceeds will be used to redeem the company's $1.46 billion of senior secured notes due in 2025 and to pay related fees and expenses. “While the transaction will be slightly leveraging, it is credit positive as it will extend Community's debt maturity profile and lower its cash interest costs,” the agency said in a press release.

The outlook remains stable.

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