Moody's assigns RegionalCare Hospital loans B3

Moody's Investors Service said it assigned B3 corporate family and probability of default ratings to RegionalCare Hospital Partners, Inc. Moody's also assigned a B2 rating to the company's proposed senior secured credit facility, consisting of a $100 million revolver and a $295 million term loan.

Moody's said that that the proceeds of the facility will fund the acquisition of Essent Healthcare and refinance the company's existing debt.

The outlook is stable.

Moody's said the corporate family rating reflects its expectation that the company will operate with significant leverage following the proposed transaction. Moody's calculation of leverage includes an adjustment to treat 50% of the balance of the preferred stock of the company as debt.

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