S&P gives Apria notes BB-

Standard & Poor's said it assigned its BB- rating to Apria Healthcare Group Inc.'s proposed $265 million senior subordinated notes due 2017.

At the same time, the agency said it affirmed its existing ratings, including the BB+ corporate credit rating, on Apria.

The outlook is stable.

The notes are being issued to help finance Apria's recently announced $350 million acquisition of specialty infusion services provider Coram Inc., the agency noted, adding that the ratings continue to reflect the exposure of the company's businesses to variable third-party reimbursement policies and pricing, the financial impact that fee cuts have had on the company in the past couple of years and risks related to the integration of Coram's operations.

S&P said that these concerns are mitigated partially by the company's leading position in providing specialized home health care services and equipment and its history of generating significant cash flows.

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