Moody's: Kindred view to negative

Moody's Investors Service said it revised the outlook of Kindred Healthcare, Inc. to negative from stable.

The agency also affirmed the existing ratings of Kindred, including the B1 corporate family rating and B1-PD probability of default rating.

The outlook change follows Kindred's announcement of its proposal to acquire the equity of Gentiva Health Services, Inc. for a combination of cash and stock.

Moody's said the change reflects its expectation that a successful completion of the acquisition of Gentiva could result in higher adjusted leverage and will increase reliance on Medicare reimbursement. The agency also believes that there could be integration risks as the acquisition would be relatively large compared to Kindred's existing business and would significantly increase the size of its smallest operating segment.

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