S&P: Radiation Therapy still on Watch

Standard & Poor's said the BB- corporate credit rating on Radiation Therapy Services Inc. remains on CreditWatch with negative implications, where it was placed on Oct. 22.

The agency said it expects to lower the rating to B+ to reflect the increased debt leverage that will result from the $764-million acquisition by Vestar Capital Partners. The deal is valued at about $1.1 billion, including the assumption of debt.

The outlook is expected to be stable.

Ratings reflect the competitive and fragmented oncology market, some geographic concentration risk, the company's acquisitiveness and its high debt leverage, the agency said.

Ratings also reflect the essential services the company provides, favorable demographics and dominant positions in the markets it serves, S&P said.

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