S&P rates AMN Healthcare loan add-on BB-

Standard & Poor's said it assigned a BB- senior secured bank loan rating with a recovery rating of 3 to AMN Healthcare Inc.'s proposed $40 million senior secured term loan B add-on due in 2011. The outlook remains negative.

AMN plans to use the proceeds from the $40 million add-on to repurchase $40 million of company stock. S&P said this transaction essentially offsets AMN's solid operating performance since the company purchased The MHA Group Inc. on Nov. 2, 2005.

The agency said the ratings on AMN, a subsidiary of AMN Healthcare Services Inc., reflect the company's operating focus in health-care staffing, the variable supply of available travel nurses and the company's debt burden.

These concerns are partially mitigated by favorable long-term demand trends for temporary nurses, AMN's position as an industry leader, the greater revenue diversity provided by its acquisition of The MHA Group Inc. and the company's proven ability and willingness to reduce its outstanding debt, S&P said.

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