S&P drops Arias, gives debt CCC+

Standard & Poor's said it lowered its counterparty credit and senior debt ratings on Arias Acquisitions Inc. to B from B+.

At the same time, S&P said it assigned its CCC+ rating to Arias' subordinated debt

The outlook is stable.

The agency said that the rating action reflects the fact that the company's top line revenue growth, operating margins, operating cash flows and interest coverage ratio were below prior expectations.

S&P noted that the rating also reflects the company's reliance on a single insurance carrier for APP that highlights its vulnerability, very highly leveraged capital structure, very limited financial flexibility and low quality balance sheet due to the large amount of intangibles.

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