S&P affirms ScribeAmerica

S&P said it affirmed its B long-term issuer credit rating on ScribeAmerica Intermediate Holdco LLC. The outlook remains stable.

At the same time, S&P affirmed its B issue-level rating on the company's first-lien secured debt, which comprises a $15 million revolving credit facility, a $250 million term loan, and the new $135 million term loan add-on. The 3 recovery rating remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

“While we expect ScribeAmerica's leverage to spike to 7.5x in 2018 following its unusually large acquisition of PhysAssist Scribes, we anticipate that its leverage will remain below 5x in 2019 due to the lack of suitably large acquisition targets in its market,” S&P said in a news release.

“Our overall assessments of the company's business and financial risk remain little changed despite the business benefits of the merger.”

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