S&P gives ReAble loan B+

Standard & Poor's said it assigned its B+ senior secured and 2 recovery ratings to ReAble Therapeutics Finance LLC's $55 million term loan B add-on.

At the same time, S&P said it affirmed all of its existing ratings on ReAble Therapeutics Inc. and its subsidiaries, including the B corporate credit rating.

The outlook remains stable.

The agency noted that the B+ senior secured rating, one notch above the corporate credit rating on ReAble Therapeutics Inc. and the 2 recovery rating indicate the expectation for substantial recovery in the event of a payment default.

According to S&P, the ratings on ReAble (formerly Encore Medical Corp.) reflect the company's significant reliance on electrotherapy products, its acquisition-based growth strategy and its highly leveraged capital structure while these negative rating factors are only partially offset by the company's strong positions in the niche physical therapy and orthopedic rehabilitation equipment markets.

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