S&P rates Air Medical notes B

Standard & Poor's said it assigned a preliminary B corporate credit rating to Air Medical Group Holdings Inc. and preliminary B issue and 4 recovery ratings to its $545 million senior secured notes.

The outlook is stable.

Proceeds will be used to fund a leveraged buyout from financial sponsors. Air Medical is being purchased by Bain Capital in a highly leveraged deal.

"The company's rating reflects its high debt leverage, limited historical cash flow generation and a narrow operating focus in a fragmented and competitive market that is exposed to reimbursement and regulatory risk," S&P analyst Rivka Gertzulin said in a statement.

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