S&P: InSight still on watch

Standard & Poor's said the ratings on InSight Health Services Corp., including the company's B+ corporate credit, senior secured debt and subordinated debt ratings, remained on CreditWatch negative despite its Aug. 13 announcement that it has filed an application with the Securities and Exchange Commission to withdraw the registration statement for its proposed initial public offering of Income Deposit Securities (IDS) and a related public offering of senior subordinated notes.

Although the IDS filing prompted the CreditWatch placement on June 23, S&P said it views the intention to use this structure as evidence of an aggressive financial posture. InSight is retreating from the IDS issuance because current market conditions for public offerings are unfavorable.

S&P said it is concerned about the acquisitive and debt-burdened company's exposure to heightened competition in the industry.

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