...May 21, 2024 TORONTO (S&P Global Ratings) May 21, 2024--Franklin, Tenn.-based health system Community Health Systems Inc. (###+/Negative/--) has announced a tack-on offering to its existing 10.875% senior secured notes due 2032. The company plans to use the proceeds from the latest offering to redeem all or a portion of the approximately $1.12 billion remaining outstanding senior secured notes due 2026 at a 100% redemption price. We view the move as a credit positive in that it reduces the amount of the company's nearest maturity. Our '###+' issuer credit rating on the company reflects leverage that we expect to remain over 8x and takes into consideration that the company has yet to establish a track record of sustained positive free cash flow generation. Community Health is seeing revenues recover as patient demand continues to return post-pandemic and labor costs moderate, though they remain elevated, limiting the company's ability to quickly and meaningfully de-lever. Community Health...
