S&P rates AmeriPath loan BB-

Standard & Poor's said it affirmed AmeriPath Inc.'s B+ corporate credit rating and B- subordinated debt rating and removed them from CreditWatch negative. S&P also rated AmeriPath's proposed $298.5 million senior secured credit facility BB- with a recovery rating of 1.

The outlook is negative.

The affirmation reflects S&P's belief that the company's well-entrenched anatomic pathology business will generate cash flows significant enough to meaningfully reduce debt over the next 12 to 24 months.

However, the negative outlook reflects management's challenge in integrating a relatively large business that has been unprofitable in recent years, S&P said.

The ratings also reflect management's challenge to improve performance while being saddled with leveraged buyout- and acquisition-related debt.

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