S&P: HealthTronics view stable

Standard & Poor's said it revised the outlook on HealthTronics Inc. to stable from negative and affirmed the BB- corporate credit rating.

This action reflects stabilization of core lithotripsy operations and increased confidence that acquisitions will be modest in scale or financed with a mix of debt and common equity, the agency said.

The rating reflects the company's narrow business focus, mature lithotripsy operations, vulnerability to third-party reimbursement and significant minority interest payments, S&P said.

These challenges are somewhat mitigated by HealthTronics' market leadership in the lithotripsy medical segment, its efforts to leverage its physician partner base to expand its product portfolio and its capacity to leverage its balance sheet, the agency said.

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