S&P: Apria Healthcare negative

Standard & Poor's said that it affirmed the BB- corporate credit rating and all issue-related ratings on Apria Healthcare Group Inc. and revised the outlook to negative, given cash flow that is below expectations and ongoing working capital management issues.

The ratings and outlook on Apria reflect the company's aggressive financial risk profile as a sponsor-owned company as well as its exposure to third-party reimbursement and an uncertain pricing environment, the agency said.

The ratings consider the fair business risk profile, bolstered by Apria's leading position in providing specialized home health care services and equipment, the agency added. However, the unsuccessful outsourcing of Apria's billing function has caused the company to fall short of EBITDA expectations, despite the company's continued initiative to pursue cost savings, which largely have been achieved.

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