S&P: ExamWorks view to positive

Standard & Poor's said it affirmed its B corporate credit rating on ExamWorks Group Inc. and revised the outlook to positive from stable.

S&P said the outlook revision is based on the expectation that the company will improve profitability and free operating cash flow and maintain leverage below 5 times while executing on its organic-growth oriented strategy.

The agency also affirmed its CCC+ issue-level rating on the unsecured notes (two notches below the corporate credit rating). The recovery rating is 6, indicating the expectation for negligible (0%-10%) recovery of principal in the event of payment default.

"Standard & Poor's Ratings Services characterizes ExamWorks' business risk profile as 'weak,' which we revised from 'vulnerable,' recognizing the company's narrow operating focus in a small niche industry, and the exposure to regulatory changes in certain markets that can affect the demand for IMEs," S&P credit analyst David Kaplan said in a news release.

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