S&P cuts Apria Healthcare senior secured debt to BB-

Standard & Poor's said it lowered its issue-level rating on Apria Healthcare Group Inc.'s senior secured debt to BB- (one notch higher than the B+ corporate credit rating on the company) from BB and revised the recovery rating on this debt to 2, indicating an expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default, from 1 (90% to 100% recovery expectation).

The rating actions follow Apria's pending increase of its proposed term loan due 2020 by $150 million, bringing the total amount to $900 million.

S&P said its view is that the larger size of this debt class reduces recovery prospects in the event of a default. All other existing ratings on the company are unaffected.

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