S&P keeps Genesis on watch

Standard & Poor's said its corporate credit rating on Genesis HealthCare Corp. (B+/Watch negative) remains on CreditWatch with negative implications, where it was originally placed on Jan. 17.

The CreditWatch listing reflects the company's pending LBO by Formation Capital LLC and JER Partners, the agency said.

After a bidding war between the Formation Capital/JER Partners joint venture and Fillmore Capital Partners LLC, shareholders on May 30 approved the offer by Formation/JER of $69.35 per share, S&P noted.

S&P added that it expects that the transaction will include the issuance of a significant amount of new debt that could lead to a downgrade.

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