S&P rates RadNet loan B+, notes CCC+

Standard & Poor's said assigned its B+ debt rating and 2 recovery rating to RadNet Management Inc.'s $375 million secured bank facility, along with a CCC+ debt rating and 6 recovery rating to the company's $210 million senior unsecured debt. The agency also said it affirmed the corporate credit rating at B.

The outlook is stable.

The ratings reflect the fragmented and competitive nature of the diagnostic imaging industry, low barriers to entry, reimbursement risk and the company's considerable dependence on an affiliated entity, Beverly Radiology Medical Group, for its professional staffing, S&P said.

The company's weak business risk profile continues to reflect uncertainty tied to competition from a fragmented competitive field and variable fees from third-party payors, the agency said.

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