Summary: Select Medical Corp. Apr 08

Standard & Poors, April 2008

Abstract
The low speculative-grade rating on Mechanicsburg, Pa.-based Select Medical Corp. reflects the company's relatively narrow service niche as an operator of long-term acute-care hospitals (LTACHs), inpatient rehabilitation hospitals, and outpatient rehabilitation clinics. In addition, regulatory and reimbursement concerns remain prominent risks, particularly because the company derives nearly one-half of its revenues from Medicare. The rating also reflects Select's debt-laden capital structure related to its 2005 leveraged buyout. Somewhat better near-term earnings prospects may help support its highly leveraged financial risk profile; however, limited free operating cash flow likely will prevent a significant reduction of high debt levels. Select is one of the two largest operators of LTACHs in the U.S. and is the largest operator of outpatient rehabilitation clinics. The...

Companies mentioned in this report are:
- Select Medical Corp.

Action: Review

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.

- Select Medical Corp.

Customers who bought this item also bought

• Vocational Rehabilitation Service Lines World Report
• Vocational Rehabilitation Services World Report
• China Aged Care Service Industry Report, 2011-2012
• China Aged Care Service Industry Report, 2011-2012
• The Survey of Medical School Faculty: Use of Journals, Databases, Repositories and other Information Sources
• Distance Learning - Global Outlook
• The Survey of Medical School Faculty: Level of Satisfaction with the Medical Library
• Managing Image Collections: A Practical Guide
• Adult Education - Global Outlook
• Health, Education, Cultural and Social Services Administration in Indonesia