S&P affirms Select Medical

Standard & Poor's said it affirmed the B+ corporate credit rating on Select Medical Corp.

The agency also said it placed the BB credit rating on Select's senior secured debt on CreditWatch with negative implications because a potential increase in the size of this debt class may reduce recovery prospects in the event of payment default.

The agency also affirmed the B credit rating on the company's senior unsecured debt. The recovery rating on the senior secured debt is 1, indicating 90% to 100% expected recovery, and the recovery rating on the senior unsecured debt is 6, indicating 0 to 10% expected recovery.

The ratings reflect the neutral impact on Select's overall financial risk profile of the pending transaction because it does not expect the total amount of debt outstanding to change, S&P said.

The ratings also consider Select's weak business risk profile and highly leveraged financial risk profile, the agency said.

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