S&P rates Envision BB-

S&P said it affirmed the BB- corporate credit rating on Envision Healthcare Holdings Inc.

The agency also said it assigned a BB- corporate credit rating to Envision Healthcare Corp., the new parent company and entity that issues the financials.

The outlook remains positive.

S&P said it subsequently withdrew the rating on Envision Healthcare Holdings.

The recovery rating on Envision's senior secured debt remains at 3, indicating 50% to 70% expected default recovery.

The 6 recovery rating indicates 0 to 10% expected default recovery.

The ratings reflect an expectation that the combination of incremental EBITDA from 2017 acquisitions and expected debt repayment following the planned AMR sale will largely offset the leverage increase resulting from the proposed incremental $500 million term loan and the expected EBITDA loss from the AMR divestiture, S&P said.

This would lead to leverage of about 4.5x in 2017 and about 4x in 2018, which is consistent with the current rating and outlook, the agency said.

The positive outlook reflects a belief that that the company could reduce leverage to about 4x by the end of 2018, S&P said.

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