S&P cuts Radiation Therapy, gives loan BB-

Standard & Poor's said it lowered the corporate credit rating on Radiation Therapy Services Inc. to B+ from BB- based on the increase in debt leverage that will result from the company's impending acquisition by Vestar Capital Partners.

The deal is valued at about $1.1 billion, including the assumption of debt, the agency said.

The outlook is stable.

At the same time, S&P said it assigned a BB- rating to the company's $440-million secured debt financing with a recovery rating of 2.

According to the agency, the ratings on Radiation Therapy reflect the competitive and fragmented oncology market, some geographic concentration risk and the company's acquisitiveness, as well as its high debt leverage, which will increase as a result of its acquisition by Vestar.

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