S&P revises Concentra to stable

S&P said it affirmed the B+ corporate credit rating and issue-level rating on Concentra Inc. and revised the outlook to stable from negative.

"The outlook revision on Concentra is in conjunction with our outlook revision to stable on Concentra's parent company, Select Medical," S&P credit analyst Elan Nat said in a news release.

This action follows Select's recent success in mitigating the negative impact of the new reimbursement environment that went into effect in 2016, when reimbursement of LTAC services at the attractive LTAC-specific rate narrowed to patients meeting more stringent criteria.

The agency said it is more certain that Select can maintain stable EBITDA margins of about 17%, along with healthy free cash flow, which results in adjusted debt leverage declining below 5 times in 2017 and generally remaining between 4 times and 5 times.

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