S&P lifts Rural/Metro

Standard & Poor's said it raised Rural/Metro Corp.'s corporate credit rating to B+ from B and the company's Holdco senior discount notes to B with a recovery rating of 5 from CCC+ with a recovery rating of 6.

The ratings were removed from CreditWatch with positive implications, where they were placed on Oct. 20, and the outlook is stable.

The agency said the upgrade reflects the completion of the previously announced refinancing transaction, which extends the maturity of the senior credit facility and gives the company the ability to continue to use its free cash flow to reduce debt.

The rating is supported by Rural/Metro's position as one of the largest commercial providers of medical transport services.

The low-speculative-grade corporate credit rating on Rural/Metro reflects the company's exposure to the ongoing uncertainty of government reimbursement rates and sustainability of price increases from commercial payors, relatively thin operating margins and high levels of uncompensated care, S&P said.

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