S&P takes BioScrip off watch

Standard & Poor's said that it affirmed BioScrip Inc.'s B corporate credit and B- senior debt ratings and removed them from CreditWatch, where they were placed with negative implications on Nov. 19.

The outlook is negative.

The rating actions reflect a greater probability of a possible covenant violation because of recent weak operating performance, S&P said.

The negative outlook reflects uncertainty about the company's strategy to contend with a rising cost structure, the agency said.

The ratings on BioScrip reflects the company's vulnerable business risk profile because of its position as a relatively small player in the highly competitive specialty pharmacy business market, thin operating margins and its heavy reliance on margin growth through its expansion in the highly fragmented home health business, the agency added.

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