S&P assigns CCS Medical loans B, CCC+

Standard & Poor's said it assigned its B corporate credit rating to CCS Medical. The outlook is negative.

At the same time, the company's proposed $350 million senior secured first-lien bank facilities due in 2011 and 2012 were rated B, with a recovery rating of 2, and the company's $130 million second-lien term loan due in 2013 was rated CCC+, with a recovery rating of 5.

S&P said the ratings on CCS reflect the company's exposure to the vagaries of reimbursement by third-party payors, integration risk related to the merging of the second- and third-largest companies in the mail-order chronic care market and the company's aggressive leverage.

The agency said these risks are somewhat mitigated by the growing market for the company's services, its relatively diversified revenue and payor mixes and its strong margins and liquidity.

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