Moody’s lifts Community Health Systems

Moody's Investors Service said it upgraded the ratings of Community Health Systems, Inc., including the corporate family rating to B3 from Caa2 and the probability of default rating to B3-PD from Caa2-PD.

Moody's also upgraded Community's senior secured notes to B2 from Caa1, junior priority secured notes to Caa2 from Caa3, and senior unsecured notes to Caa2 from Ca.

Lastly, the agency upgraded Community's speculative grade liquidity rating to SGL-2 from SGL-3.

The outlook remains stable.

“The aforementioned ratings upgrades collectively reflect Community's improved operating performance, partly owed to the completion of a multi-year divestiture program that allowed the company to shed underperforming hospitals,” the agency said in a news release.

“The upgrades also reflect significant interest expense savings from recent refinancing actions that will help augment cash flow and liquidity.”

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