S&P affirms Merge

Standard & Poor's said that it affirmed the B+ debt rating on Merge Healthcare Inc.'s $50 million add-on to the existing $200 million of 11¾% senior secured notes due May 1, 2015. The recovery rating remains 2, indicating substantial (70%-90%) recovery in the event of default.

The outlook is stable.

The company intends to use the net proceeds from the debt issuance to redeem existing preferred stock of similar amount.

The ratings on Merge reflect the company's narrow business profile, weak cash flow measures and an acquisitive growth strategy, the agency said.

The B corporate credit rating on Merge remains unchanged.

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