S&P: Gentiva still on watch

Standard & Poor's said its B- rating on Gentiva Health Service Inc. remains on CreditWatch, where it was initially placed with negative implications on Nov. 3.

According to S&P, the recent partial amendment to Gentiva's senior secured credit agreement prevented a possible covenant breach in the December 2011 quarter by eliminating a scheduled step-down of the consolidated leverage ratio covenant and allowing for adjustments for one-time restructuring charges.

However, though the company provided earnings guidance for 2012, S&P said operating trends remain negative and under pressure and the company remains exposed to a technical default in the near term.

The agency plans to resolve the CreditWatch listing after assessing the impact of 2012 Medicare rate cuts and restructuring initiatives on Gentiva's leverage and cash flow and monitoring the company's efforts to secure a final amendment to its credit agreement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.