S&P rates Schumacher loan B

S&P said it assigned a B with a 3 recovery rating to Schumacher Group Of Delaware Inc.’s planned first-lien term loan. The 3 rating indicates an expectation of meaningful (50%-70%, rounded estimate: 50%) recovery in default.

The proceeds and balance sheet cash will be used to refinance Schumacher’s first-lien loan and second-term loan.

The agency also revised the outlook to stable from negative and affirmed the B issuer rating.

“The stable outlook reflects the extension of the company’s debt maturity profile as well as our view that it is adapting to likely permanently lower volume by reducing costs and realigning physician compensation to productivity metrics,” S&P said in a press release.

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