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Summary: Aurora Diagnostics Holdings LLC Dec 11
Standard & Poors, Dec 2011
Abstract
The low speculative-grade ratings on Palm Beach Gardens, Florida-based Aurora Diagnostics Holdings LLC reflect its 'weak' business risk profile (as Standard & Poor's Ratings Services defines the term), characterized by an aggressive growth strategy, narrow operating focus, vulnerability to customer in-sourcing, the potential for reimbursement pressure, and weakened profitability. Adjusted debt to EBITDA of 6.3x as of Sept. 30, 2011, and the call on liquidity from earn-out payments, which we expect, are features of the highly leveraged financial risk profile. We expect adjusted debt leverage to remain above 5x, with continued pressure on profit margins. Aurora's 'weak' business risk profile reflects this young company's small scale relative to formidable competitors Quest Diagnostics Inc. and Laboratory Corp. of America Holdings, which...
Companies mentioned in this report are: Aurora Diagnostics Holdings LLC,Aurora Diagnostics LLC
Action: Affirmed
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
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