S&P: Premier Dental loan B

Standard & Poor's said it assigned a B corporate credit rating to Premier Dental Services Inc. and its Western Dental Services Inc. subsidiary.

The outlook is stable.

The agency also said it assigned a B credit rating to Premier's proposed $275 million secured term loan and $25 million revolving credit facility with a recovery rating of 3, indicating 50% to 70% expected recovery in a default.

The ratings reflect the company's vulnerable business risk profile, characterized by Premier's narrow business focus, geographic concentration and unfavorable payor mix relative to other U.S. dental service providers, said Gail Hessol, an S&P analyst.

Premier will continue to open new dental care centers at a measured pace that can be financed internally, the agency said.

S&P also said it expects new and maturing offices to result in low single-digit annual revenue growth over the medium term, with generally flat same-store revenues.

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