S&P rates Metropolitan Health B+, loans BB-, B-

Standard & Poor's said it assigned a B+ counterparty credit rating to Metropolitan Health Networks Inc., along with a BB- senior secured debt rating and 2 recovery rating on its proposed $25 million senior secured revolving credit facility maturing in 2016 and $240 million senior secured term loan maturing in 2016.

The agency also said it assigned a B- debt rating and 6 recovery rating on the company's proposed $90 million second-lien term loan maturing in 2017.

The outlook is stable.

Metropolitan is acquiring Continuecare Corp. with the transaction expected to close in August 2011.

The counterparty credit rating is based on the consolidated company's expanded post-acquisition competitive position and strengthened earnings profile, S&P said.

Offsetting these positive factors are the company's geographic, product and client concentrations, along with its weak balance-sheet quality and integration risk, the agency said.

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