S&P rates Kindred, loan B+

Standard & Poor's said that it assigned a preliminary B+ corporate credit rating to Kindred Healthcare Inc. and a B+ preliminary issue-level rating with a 3 recovery rating to the company's proposed term loan.

The outlook is stable.

The rating on Kindred Healthcare reflects the reimbursement risk of Kindred's businesses as well as the relatively competitive and fragmented market characteristics for the services they provide, S&P said.

While the acquisition of RehabCare will expand its position in post-acute care services, the debt required for the transaction contributes to its aggressive financial risk profile, the agency added.

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