S&P revises CHG loan recovery to 4

Standard & Poor's said it revised its recovery rating on CHG Healthcare Services Inc.'s B-rated first-lien term loan to 4 from 3.

The revision follows the company's announcement that it plans to increase the first-lien term loan by $200 million. The 4 recovery rating on the first-lien debt indicates an expectation of average (30% to 50%, at the high end of the range) recovery in the event of a payment default.

S&P revised the recovery rating because of weaker recovery prospects for these lenders due to the incremental first-lien debt. The issue-level rating on the first-lien term loan remains B, at the same level as the corporate credit rating.

The company will use proceeds of the add-on to retire the second-lien debt. The agency expects to withdraw the rating on the second-lien debt upon close.

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