S&P rates On Assignment, loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to On Assignment Inc.

The outlook is stable.

At the same time, S&P said it assigned its loan and recovery ratings to On Assignment's $165 million senior secured first-lien credit facilities, consisting of a $20 million revolving credit due January 2012 and a $145 million term loan B due January 2013, noting that the facilities were rated B+ with a recovery rating of 2.

Proceeds from the bank debt, in addition to $91 million of cash and $10 million of On Assignment stock, will be used to fund the company's $41 million acquisition of Vista Staffing Solutions Inc. and $200 million acquisition of Oxford Global Resources Inc., the agency said.

S&P added that the B+ corporate credit rating reflects On Assignment's operating concentration in the highly competitive professional staffing industry, the variable demand for outsourced labor from hospital clients, the variable supply of travel nurses and temporary doctors, exposure to the highly cyclical technology industry and risk with respect to the acquisition of a company outside of On Assignment's core health care staffing expertise.

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