Fitch rates Schoen Klinik B+, loan BB-

Fitch Ratings said it assigned Schoen Klinik SE’s planned €350 million term loan expected BB-/RR2 ratings and the issuer a first-time B+ issuer default rating. The outlook is stable.

“The B+ IDR is supported by Schoen's solid market position in the non-cyclical and well-funded German private hospital market and significant financial flexibility enhanced by real-estate ownership. These strengths are balanced with Schoen´s high EBITDAR gross leverage, a personnel-intensive fixed cost base and limited geographical footprint exposing its credit profile to potential changes in a single reimbursement system,” Fitch said in a press release.

The outlook reflects the position of “Schoen's moderating leverage through organic profitability improvement and a prudent financial policy versus that of traditional sponsor-owned healthcare providers,” the agency said.

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