S&P rates United Surgical add-on term loan B

Standard & Poor's said it affirmed its B corporate credit rating on United Surgical Partners International Inc. The outlook is stable.

The agency affirmed its B issue-level rating and 3 recovery rating on the company's existing senior secured term loans due 2014, 2017 and 2019. The agency also affirmed its CCC+ issue-level rating and 6 recovery rating on the company's $440 million senior unsecured notes.

At the same time, the company's proposed $150 million senior secured add-on term loan B due 2019 is rated B with a recovery rating of 3, indicating an expectation for meaningful recovery for lenders in the event of payment default.

S&P said the ratings on United Surgical Partners reflect its highly leveraged financial risk profile, highlighted by debt leverage of 9.1x. The agency said it expects the add-on to increase adjusted debt leverage only minimally to 9.2x, pro forma for completed acquisitions.

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