S&P: Radiology Partners unchanged

S&P said Radiology Partners Holdings LLC's acquisitions of Austin Radiological Association and Desert Radiology do not affect the ratings on the company.

While the acquisitions exceed the merger and acquisition expectations for Radiology Partners, adjusted leverage and cash flows metrics remain appropriate, the agency said.

There are limited concerns regarding its ability to quickly integrate the acquired operations, S&P said.

The company will fund a portion of the transactions with $365 million of incremental first-lien debt, the agency noted.

The recovery estimate for the first-lien term loan remains at 55% despite the slightly increased proportion of first-lien debt in the company's capital structure due to the additional EBITDA stemming from the acquisitions, S&P said.

The overall view of the business is unchanged, given the continued still-limited size and narrow focus of providing radiology services, the agency added.

The ratings also reflect the company's highly leveraged financial risk profile with an expectation of adjusted debt leverage of higher than 8x for the next few years, S&P said.

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