S&P revises Kindred loan recovery rating

Standard & Poor's said it revised the recovery rating on Kindred Healthcare Inc.'s senior secured term loan to 4, indicating 30% to 50% expected recovery in a default, from 3.

The B+ rating is unchanged.

The revision reflects a view of reduced recovery prospects for the term loan because of the larger size of the super priority revolving credit facility and increased amount of senior secured term loan debt, S&P said.

All other existing ratings, including its term loan and B+ corporate credit rating, are unchanged.

The outlook is stable

The ratings reflect the company's weak business risk profile as a result of reimbursement risk despite its relatively diversified business portfolio that spans several subsectors, S&P said.

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