S&P: Matria Healthcare unaffected

Standard & Poor's said Tuesday that the ratings and outlook on Matria Healthcare Inc. (B+/stable/--), a provider of disease-state management and related products, would not be affected by the company's tender offer for its 11% senior unsecured notes nor by the company's lowered earnings per share guidance for the first quarter of 2004.

Matria has not disclosed how it will finance the tender for about $120 million of its unsecured notes. However, the company has stated that it expects to save more than $5 million of net interest annually from the transaction.

While viewed positively by S&P, the agency said these savings are not significant enough to alter the ratings or outlook on the company.

Matria also announced that it is lowering its earnings guidance for the first quarter of 2004 to a range of 8 to 12 cents per share from 14 to 19 cents per share because of a revenue shortfall in the women's health segment. This has no bearing on the ratings, as S&P had already anticipated potential operating difficulties in this segment and reflected them in its opinion.

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