S&P rates R1 RCM B-, facilities B

S&P said it assigned its B- corporate credit rating to R1 RCM Inc.

The outlook is stable.

At the same time, the agency assigned a B issue-level rating to the company's $295 million first-lien credit facility, consisting of a $25 million revolving credit facility due 2023 and a $270 million first-lien term loan B due 2025.

The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of default.

S&P said the ratings reflect the company's small scale and narrow market focus in the fragmented and highly competitive health care information technology industry, the high upfront nature of startup costs in taking on new clients, the correlated lack of significant cash flows and the company's relatively short operating track record.

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