Fitch rates Community notes B

Fitch Ratings said it assigned a B/RR4 rating to Community Health Systems Inc.'s $1 billion of proposed senior notes due 2019.

The company has a B issuer default rating and a positive outlook, and the agency rates its senior secured credit facility at BB/RR1 and its existing senior notes B/RR4.

The proceeds of the new notes will be used to refinance existing debt.

The agency said the B issuer default rating primarily reflects the improvement in the company's financial flexibility and its solid liquidity. The debt-to-EBITDA ratio dropped to around 4.9 times as of Sept. 30 from 5.8 times in 2008.

The ratings also reflect the weak organic operating trends in the for-profit hospital industry and the heightened regulatory scrutiny that Community's patient admission policies and associated billing practices are facing, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.