S&P: Renal Care unaffected

Standard & Poor's said its ratings and outlook on Renal Care Group Inc. (BB-/positive/--) will not be affected by the company's acquisition of dialysis programs in Iowa that serve about 150 patients.

The company has also entered into a joint venture with Mercy Medical Center of Des Moines, Iowa, to operate the acquired outpatient and home dialysis programs.

S&P said the transaction is consistent with Renal Care's growth plans and, although terms were not disclosed, acquisitions of this type are typically small and unlikely to test the company's credit profile. Pro forma for another recent acquisition, Renal Care's ample financial resources as of March 31 included between $60 million and $65 million in cash, nearly full availability of a $150 million revolving credit facility, and an undrawn $225 million incremental term loan. Annual free cash flow is expected to exceed $100 million after 2004, and the company has no significant debt maturities until 2009.

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