S&P cuts Marseille-Kliniken

Standard & Poor's said it lowered the long-term corporate credit rating on Marseille-Kliniken AG to B+ from BB-, owing to its still highly leveraged financial profile.

The outlook is stable.

The agency said Marseille is unlikely to meet the guideline of 5.5x adjusted debt to EBITDAR by the fiscal year-end on June 30. By the end of December, Marseille's debt-to-EBITDAR ratio was about 7x, compared with about 8x in 2007.

"We believe that in the current recessionary environment in Germany, the company is likely to achieve fiscal year-end credit metrics far below the levels typical of a BB- rating," S&P analyst Olaf Toelke said in a statement.

The rating reflects Marseille's well-established position in highly fragmented markets and the predictable growth in future nursing-care needs, the agency said.

The market is, however, subject to regulation, public price-setting and reimbursement negotiations with public welfare and insurance funds, S&P said.

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