Select Medical Corp. Rating Cut To 'B'; Outlook Negative Dec 06
- ID: 2127735
- December 2006
- Standard & Poors
NEW YORK (Standard & Poor's) Dec. 7, 2006--Standard & Poor's Ratings Services today lowered its ratings on Mechanicsburg, Pa.-based Select Medical Corp. The corporate credit rating was lowered to 'B' from 'B+', and the rating outlook is negative. "The rating downgrade reflects our increasing concern that the hospital chain's operations and financial profile will continue to be adversely affected by a particularly weak reimbursement environment for long-term acute care hospitals, flat patient volume, and increasing operating expenses," said Standard & Poor's credit analyst David Peknay. The low-speculative-grade rating reflects Select Medical's relatively narrow service niche as an operator of long-term acute care hospitals (LTACHs) and outpatient rehabilitation clinics. In addition, regulatory and reimbursement concerns remain prominent risks, particularly because about...
Companies mentioned in this report are:
- Select Medical Corp.
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