Moody's rates HCA notes B3

Moody's Investors Service said it assigned a B3 (LGD5, 85%) rating to HCA Inc.'s offering of senior unsecured notes due 2018. HCA's B1 corporate family and probability of default ratings remain unchanged.

The outlook is stable.

Moody's said it understands that proceeds from the offering will be used for general corporate purposes, which may include funding a portion of the previously announced acquisition of the remaining ownership interest in the company's HCA-HealthOne LLC joint venture.

Moody's said it also believes the proceeds could be used to repay amounts drawn under the company's revolving credit facilities to fund the recent repurchase of equity shares from Bank of America. Therefore, while the acquisition and share repurchase results in a modest increase in leverage, HCA's note issuance is in line with Moody's expectations around the funding of these transactions, the agency said.

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