S&P upgrades Sheridan

Standard & Poor's said it raised its corporate credit rating on Sheridan Healthcare Inc. to B+ from B. In conjunction with the upgrade, S&P said it raised its issue-level rating on Sheridan's first-lien senior secured credit facilities, consisting of a $50 million first-lien revolving credit facility maturing 2013 and a $485 million first-lien term loan B maturing 2014, to B+ from B. The 3 recovery rating, indicating S&P's expectation of meaningful recovery for lenders in the event of a payment default, remains unchanged, the agency said.

S&P said it also raised its issue-level rating on Sheridan's $150 million second-lien pay-in-kind toggle term loan maturing in 2015 to B- from CCC+. The 6 recovery rating, indicating S&P's expectation of negligible recovery in the event of a payment default, remains unchanged, the agency said.

The speculative-grade rating on Sheridan Healthcare reflects S&P's expectations that the company's financial risk profile will remain "aggressive," the agency said.

"Although current management has effectively navigated the company through the changes in ownership and associated variations in capital strength, we believe its history of periodically operating with high debt leverage is an important credit consideration," said S&P credit analyst Rivka Gertzulin in a news release. "Still, we expect management to use its cash flow for accretive acquisitions and for credit metrics to continue to improve over the next two years

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.