S&P rates 21st Century Oncology loans B-

Standard & Poor's said it revised its outlook on 21st Century Oncology Inc. to positive from stable.

At the same time, the agency assigned a B- corporate credit rating to the company's parent, 21st Century Oncology Holdings Inc.

The outlook is positive.

Subsequently, S&P withdrew the corporate credit rating on 21st Century Oncology Inc.

Additionally, it assigned a B- issue-level rating to the proposed first-lien credit facility. The recovery rating on the facility is 3, which reflects an expectation for meaningful (50% to 70%) recovery in the event of a payment default.

The credit facility will consist of a $210 million revolving credit facility due 2019 and a $430 million term loan B due 2021.

Proceeds from the IPO and the proposed credit facilities will be used to pay down the existing revolving credit facility, the existing first-lien term loan, the second-lien notes and other unrated debt.

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