S&P affirms Renal Advantage

Standard & Poor's said it affirmed the B corporate credit rating on Renal Advantage Holdings Inc., and assigned a B rating to its proposed $350 million senior secured term loan due 2016 and $50 million revolving credit agreement due 2015. The loan has a recovery rating of 3, indicating 50% to 70% expected recovery in a default.

The outlook is stable.

The proposed transaction is considered to be a change of control under the existing rated bank debt, therefore it is expected that the obligations will be repaid at or before the company's acquisition, which is expected to close by Dec. 31, S&P said.

The low speculative-grade rating reflects the company's vulnerable business risk profile and highly leveraged financial risk profile, the agency said.

The company's narrowly focused business depends on the treatment of a single disease, S&P said, and it expects pricing of its services to continue to be subject to intense pressure from government and private payors.

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