S&P rates AMN Healthcare loan BB

Standard & Poor's said it assigned a BB rating to AMN Healthcare Inc.'s proposed $185 million bank facility, consisting of a $110 million term loan and a $75 million revolving credit facility.

The corporate credit rating was affirmed at BB-.

The outlook is stable.

Proceeds of the financing will be used to repay the $77 million outstanding balance on the company's term loan and cash collateralize about $22 million of letters of credit.

While the refinancing extends maturities, eases scheduled amortization payments and provides covenant relief, AMN's operating environment will remain very weak in the near term, according to the agency.

"The rating on AMN Healthcare Inc., a subsidiary of AMN Healthcare Services Inc., reflects the health staffing company's weak business risk profile, given its narrow operating focus in a competitive and highly cyclical field, the recent decline in demand for outsourced labor from hospital clients, and the variable supply of travel nurses," S&P analyst Rivka Gertzulin said in a statement.

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