S&P upgrades Medical Card

Standard & Poor's said it removed the CCC counterparty credit rating on Medical Card System Inc. and its B counterparty credit and financial strength rating on Medical Card's operating companies from CreditWatch with developing implications, where it initially was placed in July 2012.

S&P said it raised the counterparty credit rating on Medical Card to B from CCC and the counterparty credit and financial strength ratings on Medical Card's operating companies to BB from B.

The outlook is stable.

The CreditWatch removal and upgrade were primarily driven by the recent amendment to its credit agreement with its lenders and its improved operating performance, said Neal Freedman, an S&P analyst.

Under the terms of the amended agreement, the company received a waiver of its previous technical default, as well as significantly less-stringent financial covenants, removing the threat of a liquidity event, Freedman said.

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