S&P rates Sheridan loans B+, B-

Standard & Poor's said it assigned its B+ corporate credit rating to Sheridan Healthcare Inc. and its B+ bank loan rating and its 3 recovery rating to Sheridan's proposed $105 million term loan due in 2010 and $40 million revolving credit facility due in 2009. The outlook is stable.

S&P also assigned its B- rating and its 5 recovery rating to the company's proposed $65 million second-lien loan.

As part of financial sponsor J.W. Childs' acquisition of Sheridan from Vestar Capital Partners, S&P said it expects that the proceeds from the term loan and second-lien loan, in addition to about $162 million of equity, will be used to purchase Sheridan's existing equity and debt and cover related fees and expenses.

The low speculative-grade ratings on privately held Sheridan reflect the company's narrow operating focus and relatively high payer and regional concentrations, S&P said.

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