Moody's ups GGNSC loan to Ba2

Moody's Investors Service said it affirmed the B2 corporate family and probability-of-default ratings of GGNSC Holdings, LLC and revised the ratings on its first-lien senior secured credit facility to Ba2 (LGD2, 20%) from Ba3 (LGD2, 26%).

The revision reflects the reduced size of the first-lien credit facility given a number of prepayments on the term loan made over the last several years. The rating on the second-lien facility is unchanged at B3 (LGD4, 59% from 68%).

The outlook remains stable.

Moody's said the B2 corporate family rating is supported by the company's large scale and broad geographic footprint within the United States.

Ratings are also supported by favorable demographics and the relative stability of demand for GGNSC's long-term care and therapy services, the agency said.

Ratings are also constrained by the company's considerable financial leverage, the agency noted.

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