S&P rates Kindred loan B+

Standard & Poor's said it affirmed its B+ corporate credit rating on Kindred Healthcare Inc.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating to the proposed $1 billion senior secured term loan. The recovery rating is 4, indicating an expectation for average (30% to 50%) recovery for lenders in the event of a payment default.

Proceeds will be used to refinance the existing term loan and repay a portion of the outstanding balance on the asset-based lending facility.

"The ratings on Kindred reflect Standard & Poor's Ratings Services view of the company's business risk profile as 'weak,' primarily reflecting its reimbursement risk and the competitive environment in each of its businesses," S&P credit analyst David Peknay said in a news release.

"The company's business lines include long-term acute care hospitals, inpatient rehabilitation hospitals, nursing homes, contract rehabilitation services, home health and hospice services. The ratings also reflect the company's 'aggressive' financial risk profile, with leverage expected to remain above 4x over the next year," Peknay added.

© 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.