S&P rates Cornerstone loan B

Standard & Poor's said it assigned its B corporate credit rating to Cornerstone Healthcare Group Holding Inc. The outlook on the company is stable.

"We also assigned the company's $150 million term loan credit facility due 2015 our issue-level rating of B with a recovery rating of 3, indicating our expectation of meaningful recovery for lenders in the event of a payment default," said S&P credit analyst David Peknay in a news release.

The agency said the ratings reflect its assessment of Cornerstone's business risk profile as vulnerable and its financial risk profile as aggressive.

S&P said it expects Cornerstone to remain subject to significant reimbursement risk, particularly from the government, because Medicare provides about three-quarters of the company's total revenues.

© 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.