S&P: HealthSouth unchanged after add-on

Standard & Poor’s said the BB- corporate credit rating on HealthSouth Corp. is unchanged by the company’s proposed $175 million add-on to its senior unsecured notes due in 2024.

The proceeds of the add-on, plus proceeds from a draw on an upcoming delayed draw term loan, will be used to repay its senior unsecured notes due in 2018.

The company’s BB+ rating on the revolving credit facility, BB- rating on senior notes and B- rating on its convertible preferred stock all are unchanged.

There also are no changes to the recovery ratings.

The ratings reflect the company’s narrow business focus and large reliance on one source for a large percentage of its revenues, S&P said.

The ratings also consider the company’s financial risk profile with leverage expected to remain in the mid-3x range, the agency said.

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