S&P Global Ratings affirmed its B corporate credit rating on American Renal Associates Holdings Inc.

The rating outlook is stable.

S&P said the affirmation reflects its view that the business has stabilized after a period of declining margins due to a shift in payor mix toward lower-reimbursing Medicare treatments from higher-reimbursing commercially insured patients.

The affirmation also reflects the rating agency's view that the company will continue to generate solid recurring free cash flow.

S&P said the stable outlook reflects its expectations for a steady payor environment in 2018, an aggressive de novo-driven growth strategy and minimal levels of discretionary cash flow after distributions to non-controlling interests and growth capital expenditures.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.