S&P cuts Insight Health

Standard & Poor's said it lowered its ratings on Insight Health Services Corp.

The corporate credit rating was lowered to CCC from B- and the outlook is negative, the agency said.

The agency added that the rating downgrade reflects the company's engagement of Lazard Freres & Co. LLC as its financial advisor to assist it in exploring strategic alternatives.

According to S&P, the rating on InSight reflects the highly fragmented and competitive nature of the medical imaging industry, the limited barriers to competitor entry and reimbursement risk.

As a result of the negative financial trend over the past nine fiscal quarters, the company's balance sheet is weak: Debt to EBITDA increased to 6.4 times for the 12 months ended Sept. 30, the agency said.

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