Fitch cuts HCA legacy notes

Fitch Ratings said it lowered HCA Healthcare, Inc.’s legacy senior secured notes to BB+/RR4 from BBB-/RR2. The agency also affirmed the issuer default ratings of HCA Healthcare and its subsidiary HCA Inc. at BB+

The lower rating is in line with HCA’s other senior unsecured debt and the IDR, due to their anticipated loss of guarantees from HCA's subsidiaries and the anticipated fall-away of their collateral, rendering them equal with HCA's senior unsecured debt, Fitch said.

Fitch said once the loss of subsidiary guarantees occurs and fall-away of collateral has been confirmed, it will update its database to list the notes as unsecured instead of secured.

The agency said it also affirmed HCA's senior secured ABL revolver at BBB-/RR1, senior secured cash flow revolver and senior secured term loans at BBB-/RR2, and senior unsecured notes at BB+/RR4, none of which is affected by the release of subsidiary guarantees and collateral exclusively with respect to HCA's legacy senior secured notes.

The outlook remains stable.

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