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S&P rates Air Methods facility B+, notes CCC+
S&P said it assigned its B corporate credit rating to Air Methods Corp.
The outlook is stable.
At the same time, the agency assigned a B+ issue-level rating with a 2 recovery rating to the company's proposed senior secured facility, consisting of a $125 million revolving credit facility and a $1.07 billion term loan. The 2 recovery rating reflects an expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default.
In addition, S&P assigned a CCC+ issue-level rating with a 6 recovery rating to the $560 million senior secured notes. The 6 recovery rating reflects an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.
"Our B corporate credit rating on Air Methods Corp. reflects its narrow focus, exposure to reimbursement risk, business operations that exhibit some earnings volatility due to adverse weather, and adjusted debt leverage that we expect will be maintained above 6.0x for the next year," S&P credit analyst Adam Dibe said in a news release.
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