S&P upgrades Kindred Healthcare secured debt

Standard & Poor’s said it raised the rating on Kindred Healthcare Inc.’s secured debt to BB- from B+ and revised the recovery rating on the debt to 2 from 4.

The agency also said it removed the rating from CreditWatch, where it was placed with positive implications in December 2014.

The upgrade reflects improved recovery prospects following the close of the Gentiva acquisition in early February, as the secured debt represents a significantly smaller proportion of total company debt than under the prior capital structure, S&P said.

The additional potential EBITDA value associated with Gentiva also strengthens recovery prospects, the agency said.

The company’s corporate credit rating of B+ is unchanged, S&P said.

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