S&P puts Examworks on watch

Standard & Poor’s said it placed the B+ corporate credit on Examworks Group Inc. on CreditWatch with negative implications.

The B- ratings and 6 recovery ratings on the company’s senior unsecured notes are unchanged, as well as the BB- rating and 2 recovery rating on its revolving credit facility.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The CreditWatch placement follows news that the company will be acquired by Leonard Green & Partners for $2.2 billion, S&P said.

While the agency said it anticipates the company’s existing debt will be refinanced as part of the transaction, the incurrence of additional debt to finance part of the leveraged buyout is likely to result in leverage significantly above the projected levels factored in the current ratings.

The watch will be resolved when more information related to the financing and post-buyout capitalization becomes available, S&P said.

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