S&P rates Triad loan BB

Standard & Poor's said it assigned its BB bank loan rating and a recovery rating of 1 to Triad Hospital Inc.'s proposed $1.1 billion senior secured credit facility due in 2011.

Proceeds from the proposed $500 million term loan A under the facility will repay the outstanding balances on existing bank term loans, as well as provide additional cash to help finance near-term capital needs.

At the same time, S&P affirmed its existing ratings on Triad (BB-/positive/B-2). The outlook is positive.

S&P said the speculative-grade ratings on Triad reflect the company's aggressive growth plan, the competitive nature of many of its key hospital markets, and the industry challenges it faces (such as bad debt and exposure to third-party reimbursement). The company's aggressive growth strategy incorporates joint-venture partnerships with not-for-profit hospitals, potentially large acquisitions, and new construction projects.

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