Research Update: Select Medical Corp. 'B' Corporate Credit Rating Affirmed; Proposed Revolver Rated 'B+', Recovery Rating '2' Apr 11
Standard & Poors, April 2011
Abstract
Mechanicsville, Penn.-based long-term acute care hospital and rehabilitation provider Select Medical Corp. plans to issue a new senior secured credit facility to refinance existing debt and pay transaction costs. We are affirming our 'B' corporate credit rating on Select and assigning our 'B+' issue-level rating, and recovery rating of '2' to its proposed new revolving credit facility and term loan. Because of the recent cash acquisition of Regency Hospital Co. LLC and earnings prospects over the next year, we lowered our debt leverage assumptions and therefore are revising our rating outlook on the company to positive from stable. Our positive rating outlook reflects our view that the potential contribution of the Regency operations to earnings, and small earnings upside of...
Companies mentioned in this report are:
- Select Medical Corp.
- Select Medical Holdings Corp.
Action: New Rating
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
- Select Medical Corp.
- Select Medical Holdings Corp.
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