S&P rates Affordable Care loan B-

Standard & Poor’s said it assigned a B- corporate credit rating to Affordable Care Holding Corp.

The outlook is stable.

The agency also said it assigned a B- rating to the company’s proposed $325 million senior secured term loan and $40 million revolving credit facility.

The recovery rating on this debt is 3, indicating 50% to 70% expected default recovery.

The rating reflects the company’s niche operating focus and limited scale, S&P said, offset by likely steady demand for the company’s services, low reimbursement risk and solid geographic diversity.

While the company’s leverage is expected to decline in the coming years, credit measures should remain consistent with a highly leveraged financial risk profile, the agency said.

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