S&P rates Emdeon loans BB-

Standard & Poor's said it assigned its BB- issue-level rating and 1 recovery rating to Emdeon Inc.'s $1,416,000,000 senior secured credit facilities, consisting of a $125 million senior secured revolving credit facility due 2016 and a $1,291,000,000 senior secured term loan due 2018.

The 1 recovery rating indicates expectations for very high (90% to 100%) recovery of principal in the event of payment default.

S&P said the amended credit agreement is expected to offer lower pricing on the credit facilities and remove the interest coverage covenant and the $125 million cap on cash that can be netted while preserving the 5.35x first-lien net leverage covenant.

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