S&P rates eResearch loan B+

Standard & Poor's said it assigned a B+ rating to eResearch Technology Inc.'s proposed $220 million term loan with a recovery rating of 2, indicating 70% to 90% expected default recovery.

The proposed term loan refinances the company's existing $220 million term loan, which also is rated B+.

Its B corporate credit rating is unaffected by the refinancing.

The outlook is positive.

The ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, S&P said.

The company has a narrow operating focus and small scale, the agency said, despite its broad customer base and leading market share in cardiac safety and respiratory central laboratory services.

The ratings also consider its highly leveraged financial risk profile, S&P said.

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