S&P affirms Marseille-Kliniken

Standard & Poor's said it affirmed the B+ long-term corporate credit rating on Marseille-Kliniken AG and removed the rating from CreditWatch, where it was placed with negative implications in November.

The outlook is negative.

The rating reflects a view that Marseille is likely to make significant progress in reducing debt following the sale of its rehabilitation division for an undisclosed sum in April, assuming that it will use the disposal proceeds for debt reduction, S&P said.

However, the rating also reflects a concern that Marseille's leverage as of June 30 will still be above the lease-adjusted total debt-to-EBITDAR of 5.5x considered commensurate for the rating, the agency said.

The rating further reflects the uncertainty regarding the company's future strategy and financial policy following the recent change in Marseille's chief executive officer and other management changes over the past 12 months, S&P said.

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