S&P rates On Assignment B+

Standard & Poor's said it assigned a B+ corporate credit rating to On Assignment Inc. assigned a B+ rating to its $20 million revolver due 2012 and $145 million term loan due January 2013 with a recovery rating of 3.

The outlook is stable.

"The low speculative-grade rating reflects On Assignment's operating concentration in the highly competitive professional staffing industry, variable demand for outsourced labor from hospital clients, inconsistent supply of travel nurses and temporary doctors, and exposure to the highly cyclical technology and life sciences industries," S&P analyst Rivka Gertzulin said in a statement.

In addition, the company faces tightening covenants under its senior credit facility while credit metrics are expected to decline in the near term, S&P said.

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