S&P affirms HealthTronics

Standard & Poor's said it affirmed its ratings on HealthTronics Inc. (formerly Prime Medical Services Inc.).

The corporate credit rating was affirmed at BB- and the outlook is stable, the agency said, noting that the affirmation follows the paydown of the company's term loan B with proceeds from the sale of its specialty vehicles business.

S&P noted that the rating on HealthTronics reflects the company's narrow business focus, vulnerability to third-party reimbursement rates and significant minority interest payments.

The rating also reflects the company's mature lithotripsy operations and acquisition-based growth strategy, S&P said, adding that these challenges are mitigated by HealthTronics' market leadership in the lithotripsy medical segment, its efforts to leverage off its physician-partner base to expand its product portfolio and its historically moderate financial policies.

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