S&P rates Team Health loans BB

Standard & Poor's said it affirmed the BB- corporate credit rating on Team Health Inc.

The agency also said it assigned a BB rating to the company's proposed $575 million senior secured first-lien credit facility, consisting of a $165 million revolver due 2016, $110 term loan A due 2016 and $300 million term loan B due 2018.

A recovery rating of 2 also was assigned, indicating 70% to 90% recovery in a default.

The outlook is stable.

The speculative-grade ratings on Team Health reflect an expectation that the company will maintain financial parameters commensurate with significant financial risk, S&P said.

The company's credit metrics are strong for the rating, following the debt reduction from the 2009 initial public offering proceeds, the agency said.

But despite its well-established market positions and a diverse payor and contract mix, the company's weak business risk profile reflects its narrow operating focus, exposure to reimbursement risk and high levels of bad debt, S&P added.

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