S&P rates Cano Health notes CCC+

S&P said it affirmed its B issuer credit rating on Cano Health Inc. and the B issue-level rating on its senior secured debt. The 3 recovery rating on the company's secured debt remains unchanged, though S&P revised its rounded recovery estimate to 65% from 50%.

At the same time, S&P assigned a CCC+ issue-level rating and 6 recovery rating to Cano's proposed $300 million senior notes due 2028. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a payment default.

The outlook is stable.

“We expect proceeds from the transaction will be used to repay in full the $250 million unsecured bridge loan that Cano Health borrowed in connection with its recent acquisition of Doctor's Medical Center (DMC), and put cash to the balance sheet for future de novo funding and general corporate purposes,” S&P said in a news release.

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