S&P cuts U.S. Renal

S&P said it lowered the rating on U.S. Renal Care Inc. and its first-lien credit facility rating to B- from B. S&P also lowered the unsecured notes’ rating to CCC.

“The downgrade reflects that discretionary cash flow is below our prior expectations, falling below 2% of debt on a sustained basis. The company's cash flow fell below our earlier expectations for reasons that suggest to us that it will sustain it at this weaker level,” S&P said in a press release.

S&P said the shift in the commercial payor mix to lower in-network from higher-paying out-of-network is a “key overhang” among others, such as the loss of cash flow from the sale of 90% of its Guam operation.

The outlook is stable.

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