...- We completed our review of Quincy Health LLC, operator of 12 rural hospitals, following its recently disclosed credit amendment, which we viewed as a distressed exchange. - Given continued tight liquidity and covenants, we believe there is substantial risk of a payment default or additional amendments that we may view as distressed exchanges. - We raised our issuer credit rating on Quincy to '###-' from '##' (selective default). - We also raised our ratings on the company's term loan to '###-' from 'D'. Our recovery rating of '4' reflects our expectation for average (30%-50%; rounded estimate: 45%) recovery in the event of default. - Our negative outlook reflects our expectation for continued weak operating performance, sizable cash flow deficits, a weak liquidity position, and a potential term loan covenant violation, which could result in a default....
