S&P rates Accredo loan BB

Standard & Poor's assigned a BB senior secured debt rating to the proposed $550 million senior secured credit facility of specialty pharmaceutical distributor Accredo Health Inc. S&P also assigned a recovery rating of 2 to the entire $550 million facility and affirmed its BB corporate credit rating on the company.

The outlook is stable.

Proceeds from the proposed offering will be used to refinance a prior credit facility and to fund operations and future acquisitions.

S&P said the speculative-grade ratings on Accredo reflect concerns about the company's concentration on a single, highly competitive business segment, specialty pharmaceuticals. The ratings also reflect the company's exposure to reimbursement rate cuts and the risks inherent in its acquisition activity.

EBITDA interest coverage is 7x and total debt to EBITDA is 2.5x.

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