August 20, 2012 / 5:35 PM / in 5 years

TEXT-S&P may still cut Healthcare Partners

2 Min Read

Overview
     -- DaVita's acquisition of HCP is expected to close by fourth-quarter 
2012.
     -- We are keeping our rating on HCP on CreditWatch Negative.
     -- We expect to lower the rating by three notches to be consistent with 
our rating on DaVita.

Rating Action
On Aug. 20, 2011, Standard & Poor's Ratings Services said that its 'BBB-' 
long-term counterparty credit rating on HealthCare Partners LLC (HCP) remains 
on CreditWatch with Negative implications where it was initially placed May 
22, 2012.

Rationale
We expect the acquisition to close by fourth-quarter 2012. The CreditWatch 
placement reflects HCP's anticipated acquisition by lower-rated DaVita Inc. 
(BB-/Stable/--), which likely will result in a downgrade of three notches.

CreditWatch
We will continue to monitor HCP's financial condition and discuss HCP's 
capital structure and role within DaVita with DaVita's management. We expect 
HCP to operate as a wholly owned subsidiary of DaVita and all of its debt to 
be repaid once the transaction is completed. We expect to lower the rating by 
three notches to be consistent with our rating on DaVita.

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

Ratings List
Ratings Remain On CreditWatch

HealthCare Partners LLC
 Counterparty Credit Rating             BBB-/Watch Neg/--  

HealthCare Partners LLC
 Senior Secured                         BBB-/Watch Neg

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