S&P affirms Sheridan Healthcare

Standard & Poor's said it affirmed its B+ corporate credit rating on Sheridan Healthcare Inc. in light of the company's proposed second amendment to its senior secured credit agreement.

The outlook remains stable.

The B+ bank loan rating and recovery rating of 3 on the company's first-lien credit facility were also affirmed, the agency said.

The ratings evidence S&P's ongoing concerns regarding Sheridan's narrow operating focus and the concentration of its payors and regions of operation.

The ratings also reflect Sheridan's exposure to malpractice risk, the threat of increased competition and the company's relatively high debt burden, the agency said, noting these concerns are partially offset by Sheridan's strong operating performance since ratings were initially assigned to the company in October 2004, an industry trend toward physician outsourcing and the company's leading niche positions in anesthesia and neonatology staffing, which have contributed to its consistent organic growth.

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