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S&P Raises HealthSouth Outlook To 'Positive'

The Associated Press

NEW YORK (AP) — Standard & Poor's Ratings Services on Tuesday raised its outlook on HealthSouth Corp., an inpatient rehabilitation services provider, to "Positive" from "Stable."

Standard & Poor's said the Birmingham, Ala., company benefits from a competitive advantage, along with positive demographic trends and industry characteristics. The company has reduced its debt and increased its cash flow, which leaves it with less risk, said S&P.

It noted that reimbursement conditions are still difficult. The agency kept a "junk" corporate credit rating of "B'' on HealthSouth, which is five notches below investment grade status.

In aftermarket trading, HealthSouth shares were unchanged at $12.10.