S&P rates Air Medical loans B

Standard & Poor's said it affirmed the B corporate credit and senior secured ratings on Air Medical Group Holdings.

The agency also said it assigned a B senior secured rating to two new senior secured issues, a $205 million term loan B maturing 2018 and a $40 million term loan maturing 2015.

The outlook is stable.

The ratings continues to reflect a highly leveraged financial profile following the Reach transaction, primarily because of a sustained debt-to-EBITDA metric of about 5x, S&P said, and modest expectations of free cash flow.

The company's weak business profile is unchanged, despite the expansion of geographic presence provided by the Reach transaction, as its portfolio is dominated by its narrow focus on emergency air transport, the agency said.

S&P said it expects reported revenue growth will slow to the mid-single digits in 2013.

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