Moody's rates Triad notes B3

Moody's Investors Service assigned a rating of B3 to Triad Hospitals Inc.'s proposed $450 million senior subordinated notes offering and confirmed the senior implied rating of the company at Ba3.

Moody's said the ratings reflect the company's leverage, the significant cash needs for funding the company's growth strategy and concerns regarding increasing expenses.

Positive factors considered include the company's favorable historical performance, its demonstrated ability to manage and reduce leverage, a stable to moderately positive reimbursement environment, an experienced management team and the diversification of the company's portfolio of facilities.

Ratings confirmed by Moody's include Triad Hospitals' $250 million senior secured revolver due 2007, $250 million term loan A due 2007, and $550 million term loan B due 2008, all rated Ba3. Also confirmed was the company's $600 million 8.75% senior notes due 2009 at B1.

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