S&P upgradesTeam Health, lowers loan recovery

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

The agency also affirmed the BB rating on its senior secured credit facility consisting of a $225 million revolver due 2017, $250 million term loan A due 2017 and $247.5 million term loan B due 2018.

The company intends to upsize its existing $142.5 term loan A in the amount of $107.5 million.

S&P also downwardly revised the recovery rating on this debt to 3 from 2, reflecting a larger debt burden in the event of default.

The 3 recovery rating indicates 50% to 70% expected recovery in a default.

The outlook is stable.

The proceeds will be used to reduce the outstanding borrowings on the company's revolver resulting from recent acquisitions, S&P said.

The upgrade reflects Team Health's sustained track record of growth, coupled with a conservative financial policy, the agency said.

In addition, Blackstone's significant reduction in equity ownership over the past few months has lowered the risk of a debt-financed shareholder-friendly event, S&P said.

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