S&P rates American Renal notes CCC+

Standard & Poor's said it affirmed American Renal Holdings, Inc.'s B corporate credit rating and assigned a CCC+ rating to the proposed $125 million senior PIK toggle notes issued by American Renal Holdings Co., Inc.

The recovery rating on the notes is 6, indicating expectation for 0% to 10% recovery.

Proceeds will be used to finance a dividend to shareholders.

The outlook is stable.

The low speculative-grade rating reflects the company's highly leveraged financial risk profile and vulnerable business risk profile, according to the agency.

Americn Renal is proposing a $119 million dividend to shareholders, increasing pro forma leverage more than two turns, to over 7x as of Dec. 31.

The company's single-focus business is relatively small, with limited geographic diversity, the agency noted.

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