The speculative grade ratings on Dallas-based United Surgical Partners International Inc. (USPI) reflect its still short history and niche position in the outpatient surgery field and concerns regarding its rapid growth and uncertain pricing prospects. The ratings on USPI rely upon Standard & Poor's analysis of the global cash flow of the company's subsidiaries. USPI has been aggressively acquiring surgery centers since its start-up in 1998. It now operates 45 surgery centers and surgery hospitals in the U.S., and, internationally, in the United Kingdom and Spain. Although USPI operates in a highly fragmented industry, its competition is essentially from local hospitals. The company's centers compete more cost effectively in a more customer-focused environment than is typical of larger inpatient settings....
Companies mentioned in this report are: United Surgical Partners International Inc.
Action: New Rating
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