S&P rates Kindred loan B+, notes B-

Standard & Poor's said that it assigned a B+ corporate credit rating to Kindred Healthcare Inc. and an issue-level rating of B+ with a recovery rating of 3 to the company's term loan. S&P assigned a B- issue-level rating to the company's senior unsecured notes with a recovery rating of 6.

The outlook is stable.

The ratings reflect the reimbursement risk of the Kindred's businesses as well as the relatively competitive and fragmented market characteristics for the services they provide, the agency said. Moreover, 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.

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