S&P rates WP CityMD loans B-

S&P said it assigned a B- corporate credit rating to WP CityMD Bidco LLC (CityMD).

The outlook is stable.

The agency also said it assigned a B- rating and 3 recovery rating to the company's senior secured credit facilities, which consist of a $30 million revolving credit facility and $225 million first-lien term facility.

The 3 recovery rating indicates 50% to 70% expected default recovery.

CityMD is a New York City-based urgent care provider. The company currently operates 70 facilities, mostly in the New York metropolitan area and has three facilities in Seattle in a joint venture with Catholic Health Initiatives, the agency explained.

The company's vulnerable business risk assessment takes into account the company's limited scale, geographic concentration, limited market share and the fragmented nature of the urgent care services sector, S&P said.

These characteristics are only partially offset by the company's limited exposure to government payors with 80% of revenues stemming from commercial payors, the agency added.

CityMD also benefits from its lower cost compared with hospital emergency rooms and its almost 100% in-network strategy with all payors, S&P said.

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