S&P affirms Diagnostic Imaging

Standard & Poor's said it affirmed its B+ corporate credit rating and B+ secured bank loan rating with a recovery rating of 4 for Center for Diagnostic Imaging Inc. and removed them from CreditWatch, where they were placed with negative implications on Aug. 1.

The outlook is negative.

Although revenues and cash flow generation have fallen short of expectations for the first nine months of the year, the company's financial parameters still remain strong relative to peers', providing some cushion at the current rating level, the agency said.

S&P said the ratings reflect the company's relatively small presence in the competitive medical imaging field, its geographic concentration, reimbursement risk and limited financial resources.

These factors overshadow favorable demand prospects related to the aging population and the benefits of imaging itself, which can preclude more expensive medical procedures and aid in the diagnosis of additional disease states, the agency said.

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