Moody’s ups Quorum Health facility to B1

Moody's Investors Service said it affirmed the B3 corporate family rating and B3-PD probability of default rating of Quorum Health Corp.

In addition, the agency upgraded the senior secured credit facility to B1 from B2 and changed the outlook to stable from negative.

Moody's also affirmed Quorum's unsecured notes rating at Caa2 and speculative grade liquidity rating at SGL-3.

Moody’s said the outlook change reflects the considerable progress the company has shown over the past year in executing on its divestiture plan and stabilizing volumes at its core group of hospitals. Adjusted admissions trends at the 24 continuing hospitals have improved considerably and the company has closed or divested 10 hospitals, all of which had negative EBITDA margins.

The upgrade of the senior secured rating reflects the continued paydown of the term loan with divestiture proceeds, the agency added.

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