S&P rates Emergency Medical notes B-

Standard & Poor's said it affirmed Emergency Medical Services Corp.'s B+ corporate credit rating.

The outlook is stable.

The agency also assigned a B- rating and 6 recovery rating on its proposed $450 million payment-in-kind toggle notes to be issued at the holding company level.

The 6 recovery rating indicates 0% to 10% expected recovery in a default.

The proceeds will be used to fund a dividend to its financial sponsor, Clayton Dublier & Rice, and other equity holders, S&P said.

The ratings reflect the company's ongoing exposure to reimbursement risk in both its ambulance transportation and physician staffing businesses, the agency said, and high levels of uncompensated care that contribute to relatively thin operating margins.

Despite these risks, S&P said the company's business risk is considered fair because of its relative diversity of services and track record of growth and stable margins.

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