Standard & Poor’s issued a “positive” outlook for one growing imaging industry player, but also sees risk given “heavy consolidation activity” in the radiology sector, reports Radiology Business.
S&P shared its updated outlook this week after US Radiology Specialists recently completed its largest acquisition to date. The agency’s optimism is driven by USRS’ newly enhanced scale, better business diversity with more focus on outpatient settings, and improved bottom line aided by the recent acquisition of “high margin” practices.
Analysts also highlighted US Radiology Specialists’ financial stability, given solid free operating cash flow. They expect the imaging group can maintain this stability “if acquisition activity is moderate.” But there is added risk of credit default because of the industry’s high volume of M&A activity. Read more.
