S&P revises RadNet view to stable

Standard & Poor's said it affirmed all of its ratings, including the B corporate credit rating, on RadNet Management Inc.

The outlook was revised to stable from negative.

"The outlook revision is based on our assessment that RadNet will exceed our original base-case expectations for 2014, providing the company will more headroom to cover sizable debt amortization payments," S&P credit analyst Tulip Lim said in a news release.

Procedural volume growth has been strong, the company has been reducing costs and management raised its 2014 guidance for revenue and adjusted EBITDA.

S&P expects RadNet’s revenue and EBITDA to grow in 2015, in line with the industry, and to generate moderate discretionary cash flow, sufficient to cover its high mandatory debt amortization payments.

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