S&P downgrades Apria

Standard & Poor's said it lowered the corporate credit rating on Apria Healthcare Group Inc. to B+ from BB-.

The agency also said it lowered the ratings on the $700 million A-1 notes to BB from BB+. The 1 recovery rating of 1 remains unchanged and indicates 90% to 100% expected recovery in a default.

S&P also said it lowered the rating on the $317 million A-2 notes to B from BB- and revised the recovery rating on those notes to 5 from 4.

The 4 recovery rating indicates 30% to 50% expected recovery in a default.

The outlook is stable.

The downgrades are mainly the result of the increased availability on the $250 million asset-based loan revolver by $100 million in 2011, the agency said.

Apria's financial risk profile is considered aggressive, reflecting the expectation that adjusted leverage will remain above 4x over the near term, S&P said.

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