S&P affirms LabCorp

Standard & Poor's said it assigned a BBB rating to Laboratory Corp. of America Holdings' $500 million senior unsecured revolving credit facility and $500 million senior unsecured term loan facility and affirmed the company's existing ratings, including the BBB corporate rating.

The outlook is stable.

The proceeds of the term loan will be used for general corporate purposes, including working capital, capital expenditures, acquisitions, funding of share repurchases and other payments, and repayment of the company's previous revolving credit facility.

The agency said LabCorp's ratings reflect the company's position as one of only two national independents in the clinical laboratory services market, as well as its broad, industry-leading specialty-testing capabilities and history of strong cash flow generation.

The ratings also take into account the company's narrow business focus and its dependence on a favorable reimbursement environment, S&P noted.

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