S&P lowers CCS Medical

Standard & Poor's said it lowered its ratings on CCS Medical.

The corporate credit rating was lowered to B- from B. The rating outlook is negative, the agency said.

S&P added that the downgrade reflects concerns regarding tight loan covenants at March 31 and the little cushion available in future periods.

Also, the agency noted that it is concerned with the success of business integration, particularly regarding accounts receivable collection and CCS's already highly leveraged financial risk profile.

The rating reflects CCS's exposure to the vagaries of reimbursement by third-party payors, integration risk related to the merging of the second- and third-largest companies in the mail-order chronic care market and the company's aggressive leverage, S&P said, adding that these risks are somewhat mitigated by the growing market for CCS's services and its relatively diversified revenue and payor mixes.

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