S&P: TLC outlook negative

Standard & Poor's said it revised its rating outlook on TLC Health Care Services Inc. to negative from developing.

Ratings on the company, including the B- corporate credit rating, were affirmed, the agency said, noting that the outlook revision follows weaker-than-expected operating performance following a late-2005 acquisition that expanded the company's home health agency operations.

The B- rating on TLC continues to reflect the company's limited cushion under its financial covenants, its significant debt burden, its narrow focus on the home health care services business, its heavy reliance on Medicare reimbursement and the potential for reimbursement reductions, the agency said.

These concerns are partially offset by the potential for margin expansion and encouraging health care trends for home care services companies, S&P noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.