Apria Healthcare Grp Put on S&PWatch,Dev Re:Sale/Mrgr Plans.NEW YORK--(BUSINESS WIRE)--S&P CreditWire 6/26/97--Standard & Poor's today has placed its ratings on Apria Healthcare Group Inc. on CreditWatch with "developing" implications given the company's announcement that it is considering the merger or sale of Apria or a capital restructuring. Developing implications means ratings may be raised or lowered. Costa Mesa Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif.-based Apria has built a leading position as a provider of respiratory therapy respiratory therapy Medical profession concerned with assisting the respiratory function of individuals who have severe lung disorders. Practices include suctioning to clear secretions from the airway, use of aerosol mists (sometimes medicated) or gases to ease breathing, and other home health services health services Managed care The benefits covered under a health contract through an active acquisition program. This has resulted in problems in billing and collection that contributed to weakened profitability and a $95 million pretax charge. This charge, to be taken in the second quarter, primarily relates to a write-off of aged receivables, as well as to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of unprofitable activities. Given these developments, and the prospect for increased government pressure on pricing for respiratory services, the company is actively exploring ways to increase shareholder value. The rating could be upgraded or downgraded, depending on the credit strength of a newly formed combined entity. The absence of an association with a higher rated company would most likely lead to a rating downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. . Standard & Poor's will monitor these developments before making a rating decision. -- CreditWire -0-
RATINGS PLACED ON CREDITWATCH WITH DEVELOPING IMPLICATIONS
Rating
Corporate credit rating BBB-
Bank loan rating BBB-
Senior subordinated notes BB+
CONTACT: Michael J Kaplan, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-1613 |
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