S&P rates Kindred notes B-

Standard & Poor's said it assigned a B- rating to Kindred Healthcare Inc.'s proposed $500 million senior unsecured notes.

The agency also said it assigned a 6 recovery rating to the notes, indicating 0% to 10% expected default recovery.

The notes will be sold pursuant to Rule 144A and the proceeds will be used to repay existing senior unsecured indebtedness.

The ratings are the same as the ratings on the company's existing senior unsecured debt and two notches below the company's B+ corporate credit rating, S&P said.

The ratings reflect its weak business risk profile highlighted by reimbursement risk, including the reliance on government payors for about half of total revenues, the agency said.

The ratings also consider its aggressive financial risk profile and adequate liquidity, S&P said.

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