S&P assigns B to RadNet

S&P said it affirmed its ratings on RadNet Management Inc., including the B corporate credit rating.

The outlook remains stable.

At the same time, the agency assigned a B corporate credit rating to parent company RadNet Inc.

“Our view of RadNet's business risk largely reflects the company's narrow focus in a very fragmented and capital-intensive diagnostic imaging industry, which is extremely competitive due to relatively low barriers to entry,” S&P said in a news release.

“Reimbursement risk from government and commercial payers given ongoing focus on utilization management is another key credit consideration, though the company's leading position in the market allows it to somewhat offset this risk as it continues to scale in key markets on the East and West coasts of the U.S., with some concentration in California.”

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