S&P boosts Rotech

Standard & Poor's said it raised its ratings on Rotech Healthcare Inc.

The corporate credit rating was raised to B-from CCC and the outlook has been revised to negative from developing, the agency said.

S&P noted that the rating action reflects the additional time afforded the company as a result of a proposed $160 million payment-in-kind loan facility due 2011 arranged by Credit Suisse.

The loan refinances the company's already existing facility, under which the company had only about $5 million of availability remaining, the agency said.

After the refinancing and prepayment expenses, S&P said it expects the transaction to leave the company with less than $50 million after its April 2 interest payment on its senior subordinated notes of $13 million.

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