S&P rates Diagnostic Imaging loan B+

Standard & Poor's said it assigned a B+ corporate credit rating to Diagnostic Imaging Group LLC in advance of the company's planned acquisition by Evercore Capital Partners. S&P also assigned a B+ rating with a recovery rating of 4 to Diagnostic Imaging's new $135 million senior secured credit facility.

Proceeds will be used to support the company's sale and recapitalization.

The outlook is negative.

S&P said the low-speculative-grade ratings on Diagnostic Imaging reflect the company's relatively small presence in the competitive medical imaging field, geographic concentration, reimbursement risk and somewhat high lease-adjusted financial leverage.

These factors overshadow favorable demand prospects related to an aging population and to the benefits of imaging itself, and Diagnostic Imaging's state-of-the-art operations and solid payor relationships, the agency said.

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