S&P rates Gentiva loan B

Standard & Poor's said it affirmed the B corporate credit rating on Gentiva Health Services Inc. following the company's plans to acquire Harden Healthcare and refinance its credit facility.

The outlook is stable.

The agency also said it assigned a B rating to the company's proposed senior secured credit facility, which will include a $100 million revolver and an $855 million term loan B.

The recovery rating on this debt is 3, indicating 50% to 70% expected default recovery.

The CCC+ rating on the company's $325 million senior unsecured notes remains unchanged. The recovery rating on this debt is 6, indicating 0% to 10% expected default recovery.

The ratings reflect the company's vulnerable business risk profile as it continues to have significant exposure to government reimbursement, S&P said.

The ratings also consider its highly leveraged financial risk profile, the agency said.

© 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.