S&P rates Ameritox, loans B-

Standard & Poor's said it assigned its B- corporate credit rating to Ameritox Ltd.

At the same time, the agency assigned a B- issue-level rating with a 3 recovery rating to the new $197.5 million first-lien credit facility, which includes an undrawn $17.5 million revolving credit line.

"Our business risk profile assessment reflects Ameritox's small size, narrow business focus, limited market share, significant reimbursement exposure to government programs, and our view that the company operates in a highly competitive and fragmented market space with fairly low barriers to entry," S&P credit analyst Maryna Kandrukhin said in a news release.

"The company's ongoing operating weakness and declining profit margins further impair its business risk profile assessment. Ameritox's adequate diversity profile and modest competitive advantage stemming from their unique quantitative testing model Rx Guardian only partially offset the described weaknesses."

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