S&P rates CHG Healthcare loan B

S&P said it assigned a B issue-level rating to CHG Healthcare Services Inc.'s $200 million incremental first-lien term loan.

The recovery rating is 3, indicating expectations for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of payment default.

The agency revised the estimated recovery percentage to 50% from 60%, reflecting higher expected first-lien debt in a default scenario.

The company intends to use the proceeds to repay a portion of second-lien debt.

“Our ratings on CHG reflect the company's weak business risk profile, highlighted by the company's operating concentration in the highly competitive health care staffing industry,” S&P said in a news release.

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