S&P rates DaVita loan BB-

Standard & Poor's said it affirmed its BB- corporate credit rating on DaVita Inc. The outlook is stable.

The agency said it lowered its rating on DaVita's senior secured debt to BB- from BB and removed it from CreditWatch, where it was placed with negative implications on May 22.

"We lowered the rating because the size of this debt class will increase substantially relative to our estimate of the enterprise's value in the event of default," said S&P credit analyst Gail Hessol in a news release.

The agency said it also revised its recovery rating on this debt to 3, indicating an expectation for meaningful recovery of principal in the event of payment default, from 2.

The agency said it assigned its BB- credit rating to DaVita's proposed $1.35 billion term loan A-3 due 2017 and $1.65 billion term loan B-2 due 2019. The agency said it assigned a 3 recovery rating to this debt, indicating an expectation for meaningful recovery of principal in the event of payment default.

S&P also said it affirmed its B rating on DaVita's senior unsecured debt along with the 6 recovery rating on this debt.

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