S&P trims U.S. Renal recovery rating

S&P said it revised the recovery rating on U.S. Renal Care Inc.’s secured debt to 4 (30%) from 3 (50%). The 6 recovery ratings on the unsecured debt are unchanged. The agency affirmed the CCC+ issuer and issue-level rating on the secured debt and CCC- rating on the unsecured debt.

“The revised recovery rating reflects the transfer of collateral assets to the newly created subsidiary, reducing recovery prospects for existing secured lenders. USRC issued $328 million of debt in a newly formed unrestricted subsidiary. The company will use the debt proceeds to support liquidity as it takes steps to improve their financial performance. The transfer of about a third of its assets to this new subsidiary reduces the amount of collateral supporting secured lenders in a default scenario, hence lowering recovery prospects,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.