Moody's assigns CHS/Community notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to CHS/Community Health Systems, Inc.'s new senior secured notes. There is no change to Community's ratings, including its Caa3 corporate family rating. The outlook is stable.

Proceeds from the new $1 billion senior secured note offering will be used to repay $1 billion of 5 1/8% senior secured first-lien notes due August 2021. In conjunction with its issuance, Community has launched a tender to purchase any and all of the 2021 notes.

Moody's said it views the transaction as being credit positive because it lengthens Community's maturity profile. In addition, it could potentially delay the springing expiration of the ABL facility from May 2021 to December 2022.

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