S&P drops Radiation Therapy

Standard & Poor's said it lowered its ratings on Radiation Therapy Services Inc.

The corporate credit rating was lowered to BB- from BB and the outlook is stable, S&P said, adding that the ratings downgrade reflects the largely debt-financed $46 million acquisition of MIRO Cancer Centers and Michigan Comprehensive Cancer Institute.

The rating on Radiation Therapy reflects the competitive and fragmented oncology market, some geographic concentration, technology risk and reimbursement risk, S&P said, adding that these risks are somewhat offset by the essential nature of the company's services and favorable demographics, its dominant position in the markets it serves, its early adoption of cutting-edge technologies and its moderate financial policies.

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