S&P lowers Select Medical

Standard & Poor's said it lowered its ratings on Select Medical Corp.

The corporate credit rating was lowered to B from B+, and the outlook is negative, S&P said.

The rating downgrade reflects S&P's increasing concern that the hospital chain's operations and financial profile will continue to be adversely affected by a particularly weak reimbursement environment for long-term acute care hospitals, flat patient volume and increasing operating expenses.

The low-speculative-grade rating reflects Select Medical's relatively narrow service niche as an operator of hospitals and outpatient rehabilitation clinics, the agency said, adding that the rating also reflects Select Medical's debt-laden capital structure related to its 2005 LBO.

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