S&P rates Envision loan BB-

Standard & Poor's said it assigned a BB- rating and 4 recovery rating to Envision Healthcare Holdings Inc.'s proposed $750 million term loan B issued by operating subsidiary Envision Healthcare Corp.

The recovery rating on this debt is 4, indicating 30% to 50% expected default recovery.

The rating on the company's existing senior secured debt remains at BB-. But the recovery rating on this debt was revised to 4 from 3, indicating 30% to 50% expected default recovery.

The revised recovery rating reflects an expectation for higher senior secured debt at default following the new term loan issuance, S&P said.

The proceeds will be used to repay revolver borrowings and fund the purchase of Rural Metro Corp., the agency said.

The company’s BB- corporate credit rating, BB- rating on the company's existing secured debt and B rating on the company's unsecured notes are unchanged.

The outlook is stable.

The ratings continue to reflect the company's concentration in emergency medicine staffing and its participation in highly competitive markets, S&P said.

These risks are moderated by the company's operations in medical transport, its scale compared to competitors and an expectation that the company will continue to grow, the agency said.

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