S&P cuts InSight Health

Standard & Poor's said it lowered its ratings on InSight Health Services Corp., including its corporate credit rating, which was lowered to B from B+, and its subordinated debt to CCC+ from B-, and removed them from CreditWatch negative.

S&P said the downgrade reflects increased business risk in the diagnostic imaging industry, particularly for mobile operators such as InSight that must continually compete to renew their annual contracts with hospitals and individual practices. These clients might begin to provide such services themselves.

Meanwhile, S&P said InSight's financial profile has eroded as a result of several debt-financed acquisitions over the past 18 months as the company has been hampered by pressure on both revenues and costs.

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