S&P may cut Curative Health

Standard & Poor's said it placed its ratings on Curative Health Services Inc. on CreditWatch with negative implications. This includes the B corporate credit rating and B- senior unsecured debt rating on the company.

S&P said the CreditWatch placement reflects S&P's growing concern regarding the company's liquidity, given the large semi-annual interest payments (due in May and November), weak cash flow from operations, and limited credit facility availability.

S&P expects to review the company's 2004 full-year performance and prospects for 2005, particularly given the change to California's Medi-Cal reimbursement and demand for the key Synagis product. Financial covenants could limit the company's access to its revolving credit facility if the business performs below the expectations considered when establishing the current covenants.

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