Surgery Partners Inc. Assigned 'B' Rating, Stable Outlook; Surgery Center Holdings Inc. Corp. Credit Rating Withdrawn

Surgery Center Holdings Inc. did an IPO late last year, establishing a new holding company, Surgery Partners Inc. We are assigning our 'B' corporate credit rating to Surgery Partners Inc. The outlook is stable. At the same time, we are withdrawing our 'B' corporate credit rating on Surgery Center Holdings Inc. At the same time, we are affirming all of Surgery Center Holdings Inc.'s issue-level ratings. The stable outlook reflects our expectation for steady reimbursement, some organic revenue growth, margin expansion as a result of cost reductions, and moderate discretionary cash flow in 2016. Margins have underperformed our 2015 expectations and we note that there is very little cushion for underperformance relative to our new forecast. NEW YORK (Standard&

...+ Surgery Center Holdings Inc. did an IPO late last year, establishing a new holding company, Surgery Partners Inc. + We are assigning our 'B' corporate credit rating to Surgery Partners Inc. The outlook is stable. At the same time, we are withdrawing our 'B' corporate credit rating on Surgery Center Holdings Inc. + At the same time, we are affirming all of Surgery Center Holdings Inc.'s issue-level ratings. + The stable outlook reflects our expectation for steady reimbursement, some organic revenue growth, margin expansion as a result of cost reductions, and moderate discretionary cash flow in 2016. Margins have underperformed our 2015 expectations and we note that there is very little cushion for underperformance relative to our new forecast. NEW YORK (Standard & Poor's) Feb. 9, 2016--Standard & Poor's Ratings Services today assigned its 'B' corporate credit rating to Surgery Partners Inc. The outlook is stable. Concurrently, we withdrew the 'B' corporate credit rating on Surgery Center...

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