S&P: AMN Healthcare BB-, loans BB+, notes B+

S&P said it assigned its BB- corporate credit rating to AMN Healthcare Services Inc.

The outlook is stable.

At the same time, the agency assigned its BB+ issue-level rating to operating subsidiary AMN Healthcare Inc.'s senior secured credit facilities, consisting of a $275 million revolver, a $150 million term loan A ($18 million outstanding) and a $75 million incremental term loan A ($72 million outstanding). The recovery rating on the secured credit facilities is 1, indicating an expectation for very high (90%-100%) recovery of principal in the event of payment default.

S&P also assigned its B+ issue-level rating to AMN Healthcare Inc.'s proposed $300 million senior unsecured notes. The recovery rating is 5, indicating expectations of modest (10%-30%, at the upper end of the range), recovery of principal in the event of payment default.

S&P said AMN has benefited from the positive demand environment created by physician and nurse shortages, growing its operations by diversifying its service lines to cross sell its services to new and existing customers.

However, AMN has a concentrated exposure to the health care staffing business, which remains fragmented, is highly competitive and cyclical, and has relatively low profit margins and exposure to the economic environment.

Still, the company has nearly doubled its revenue base over the past few years and has grown EBITDA margins to around 11%, the agency explained.

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