March 14 - Standard & Poor's Ratings Services said today that it assigned Adisson, Texas-based United Surgical Partners International Inc.'s new $440 million senior unsecured notes due 2020 its 'CCC+' issue-level rating (two notches lower than the 'B' corporate credit rating on the company). We also assigned a recovery rating of '6' to the notes, indicating our expectation of negligible (0% to 10%) recovery for lenders in the event of a payment default. United Surgical Partners will use the proceeds from the note, in addition to its new senior secured credit facility, as part of the refinancing of its capital structure and payment of a $270 million dividend to its shareholders. The ratings on United Surgical Partners reflect what we consider its "highly leveraged" financial risk profile and "weak" business risk profile (as our criteria define the terms). We see the transaction adding $150 million of adjusted debt, and adjusted debt leverage increasing minimally. While reported debt will increase $330 million, adjusted debt will increase by approximately $150 million because there will be around a $180 million reduction in preferred stock (which we already consider debt). The reduction in preferred stock includes $100 million in the spin-off of the U.K. facilities to shareholders. We expect adjusted debt leverage to increase minimally and remain below 9x. We believe the annual cash interest expense will increase to about $87 million from $65 million. United Surgical Partners' highly leveraged financial risk profile reflects our expectation that adjusted leverage will remain above 8x over the next few years because of the cumulative dividend of the preferred stock and our expectation for high-single-digit revenue and EBITDA growth. We expect organic revenue growth in the mid-single-digit area, reflecting a 2% to 3% increase in reimbursement and the remainder from volume. RELATED CRITERIA AND RESEARCH -- Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009 RAITNGS LIST United Surgical Partners International Inc. Corporate Credit Rating B/Stable/-- New Ratings United Surgical Partners International Inc. Senior Unsecured $440 mil notes due 2020 CCC+ Recovery Rating 6 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.