S&P rates Emergency Medical loans BB+

Standard & Poor's said it assigned a BB+ issue-level rating and 2 recovery rating to the new $125 million revolving credit facility and $425 million term loan issued through Emergency Medical Services Corp.'s AMR Holdco Inc. and EmCare Holdco Inc. units. The BB corporate credit rating and stable outlook are unchanged.

The proceeds will be used to refinance the company's existing revolver due 2011 and term loan B due 2012 and to refinance the senior subordinated notes that became callable after Feb. 15.

The agency said the transaction will require the outlay of $50 million of cash currently on the balance sheet but will allow the company to improve its liquidity by addressing near-term maturities and to reduce its total cost of capital.

In S&P's view, the risks in the company's business remain significant and include the potential for adverse changes in third-party reimbursement, but its intermediate financial risk profile mitigates these risks.

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