S&P lowers Select Medical view to negative

Standard & Poor’s said it affirmed Select Medical Corp.’s B+ corporate credit rating and revised the outlook to negative from stable.

Absent details on the planned funding sources, the company’s issue-level ratings and recovery ratings are unchanged at this time.

The outlook revision reflects the approaching headwinds and uncertainty from the adverse change in patient-eligibility criteria for long-term acute-care services, which went into effect in October 2015, S&P said.

The Concentra Inc. acquisition and joint venture with private equity sponsor Welsh, Carson, Anderson & Stowe XII LP provides Select with incremental diversification in the company’s core business of operating long-term acute-care facilities, the agency said.

The ratings also reflect the company’s weak business risk profile and aggressive financial risk profile, S&P said.

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