TEXT-S&P cuts HealthCare Partners rating, rating withdrawn

Fri Nov 9, 2012 1:33pm EST

Overview
     -- DaVita HealthCare Partners Inc. completed its acquisition of 
HealthCare Partners LLC (HCP) on Nov. 1, 2012.
     -- We are removing the rating on HCP from CreditWatch, then lowering our 
'BBB-' long-term counterparty credit rating on HCP to 'BB-'to be consistent 
with DaVita's rating.
     -- We are subsequently withdrawing the rating.

Rating Action
On Nov. 9, 2012, Standard & Poor's Ratings Services lowered its 'BBB-' 
long-term counterparty credit rating on HealthCare Partners LLC (HCP) after 
first removing the rating from CreditWatch with negative implications, where 
we placed it on May 22, 2012, and assigning a stable outlook. We then withdrew 
the rating at Davita's request.

Rationale
We initially placed our rating on HCP on CreditWatch with negative 
implications on May 22, 2012, when DaVita announced the acquisition. At that 
time, we stated that we would likely lower the ratings on HCP by three notches 
to be consistent with our rating on DaVita once the transaction was completed. 
The acquisition was completed on Nov 1, 2012. HealthCare Partners' outstanding 
senior secured term loan debt was repaid at transaction closing.

HCP's key financial metrics based on year-to-date June 2012 operating results 
were in line with our expectations. Over the intermediate term, we had 
expected adjusted debt to EBITDA, funds from operations to adjusted total 
debt, and adjusted EBITDA interest coverage to be about 1.5x, 50%, and well 
above 10x,respectively.

Related Criteria And Research
Use Of CreditWatch And Outlooks, Sept. 14, 2009

Ratings List
Downgraded; Outlook Action
                                        To                 From
HealthCare Partners LLC
 Counterparty Credit Rating             BB-/Stable/--      BBB-/Watch Neg/--

Ratings Withdrawn
                                        To                 From
HealthCare Partners LLC
 Counterparty Credit Rating             NR/--/--           BB-/Stable/--   
 Senior Secured                         NR                 BBB-/Watch Neg


 
Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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