S&P affirms Select Medical

Standard & Poor's said it affirmed its ratings on Select Medical Corp., including the B+ corporate credit rating and removed them from CreditWatch, where they were placed with negative implications Jan. 23 due to proposed Medicare reimbursement cuts.

The outlook is negative.

S&P noted that the low-speculative-grade rating on Select Medical reflects the company's relatively narrow service niche as an operator of outpatient rehabilitation clinics.

In addition, regulatory and reimbursement concerns remain prominent risks, particularly because about half of the company's revenues are derived from Medicare, the agency said, adding that the rating also reflects Select Medical's expansion efforts and debt-laden capital structure.

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