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Moody’s cuts Kindred Healthcare, debt
Moody's Investors Service said it downgraded the corporate family and probability of default ratings of Kindred Healthcare, Inc. to B2 and B2-PD from B1 and B1-PD, respectively.
The agency also downgraded the ratings on Kindred's senior secured debt to Ba3 (LGD 2) from Ba2 (LGD 2), and affirmed the B3 (LGD 5) rating on the senior unsecured notes.
The speculative grade liquidity rating was lowered to SGL-3 from SGL-2.
The outlook is stable.
"The downgrade of Kindred's corporate family rating reflects our expectation that the company will have difficulty growing earnings over the next year, resulting in debt to EBITDA remaining close to 5.5 times," Moody's senior vice president Dean Diaz said in a news release.
"While Kindred's decision to exit the skilled nursing sector will reduce exposure to a challenging post-acute care segment, it will not meaningfully benefit the company's financial leverage or cash flow in the near-term."
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