The speculative-grade ratings on Brentwood, Tenn.-based Community Health Systems Inc. reflect the company's diversified portfolio of nonurban hospitals as well as its aggressive acquisition activity. Furthermore, the rating incorporates the expectation that the company completes its announced equity transaction, which is likely to generate over $300 million in gross proceeds. The company's $1 billion secured bank facility, which was originated in 1999, is rated the same as the corporate credit rating. The facility is secured by all capital stock of the subsidiaries of Community Health Systems. While secured lenders may experience a modest advantage over unsecured lenders, Standard&Poor's confidence of full recovery is not sufficient to warrant notching up the rating. The facility is comprised of a revolving
