S&P rates SVP B-, loans B-, CCC

S&P said it assigned B- ratings to SVP Holdings LLC and its first-lien credit facilities. S&P gave the second-lien facility a CCC rating. The facilities’ recovery ratings are 3 and 6, respectively.

“We expect management to continue to aggressively expand via acquisitions, keeping leverage in the high-single-digit area. While we expect SVP's margins to gradually improve as it realizes greater benefits of scale, we expect its margins to remain lower than peers', reflecting its focus on lower-margin general practice clinics,” S&P said in a press release.

The outlook is stable. “Our stable outlook reflects our expectation for double-digit percentage revenue growth, steadily growing free cash flows, and improving adjusted EBITDA margins to about 14%-16%, driven by organic and inorganic growth,” the agency said.

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