S&P assigns Kyphon, loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Kyphon Inc.

The outlook is positive.

At the same time, S&P said it assigned its loan and recovery ratings to Kyphon's $675 million senior secured credit facility, consisting of a $300 million revolver maturing in 2011 and a $375 million term loan maturing in 2014.

The credit facility is rated B+ with a recovery rating of 2, S&P said, noting that proceeds mainly will be used to fund the company's $725 million acquisition of medical device manufacturer, St. Francis Medical Technologies Inc.

The ratings on Kyphon reflect the company's heavy reliance on one product line and concentration in spine-related technologies, as well as litigation risk, its indirect exposure to Medicare reimbursement and its significant debt leverage, the agency added.

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