S&P changes FHC Health to negative

S&P said it affirmed the B long-term corporate credit rating on FHC Health Systems Inc. (Beacon Health Options) and revised the outlook to negative from stable.

The agency also affirmed the B debt rating on FHC's first-lien revolver and term loan. The recovery ratings are 3, indicating our expectation for a meaningful (50%) recovery of principal in the event of a payment default.

S&P said the outlook revision is based on its view that FHC's business underperformance in 2016 may persist in 2017-2018 if it is unable to renew key contracts, get adequate rate increases and contain its heightened medical cost trends.

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