S&P lowers InSight

Standard & Poor's said it lowered its corporate credit rating on InSight Health Services Corp. to D from SD and its rating on InSight Health's senior secured debt to D from CC.

InSight Health Services Holdings Corp. and its wholly owned subsidiary, InSight Health, filed for Chapter 11 protection on May 29 with the U.S. Bankruptcy Court for the District of Delaware, the agency said.

The recovery rating on the company's $300 million senior secured notes remains 3 pending the receipt of more information, S&P added, noting that the previously announced prepackaged plan of reorganization received the support of holders of more than two-thirds of Insight Health's 9 7/8% senior subordinated notes due 2011 and 100% of the parent company's stockholders.

By filing a prepackaged plan, the company hopes to accomplish the restructuring quickly, with no disruption to its business, S&P added.

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