S&P rates Community Health loan BB

Standard & Poor's said it assigned a BB rating to the proposed $750 million senior secured term loan B due 2018 by CHS/Community Health Systems Inc., a wholly owned subsidiary of Community Health Systems Inc. (B+/stable) with a recovery rating of 1, indicating expectation of 90% to 100% recovery.

This new issue is an extension of the company's existing term loan B that matures in 2014.

The rating reflects the company's fair business risk, which reflects its large, relatively diversified portfolio of hospitals that helps the company manage uncertain reimbursement and spread local market risk over many markets, S&P said.

The rating also reflects expectation that the current debt to EBITDA level of about 5.2x will remain largely unchanged, the agency noted.

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