S&P drops Manor Care to junk

Standard & Poor's said it lowered its corporate credit rating on Manor Care Inc. to B+ from BBB-.

All ratings on Manor Care remain on CreditWatch with negative implications, where they were originally placed on April 12, after the company announced it had hired a financial advisor to consider strategic alternatives, the agency said.

S&P noted that the rating downgrade reflects today's announcement that Manor Care's board of directors approved a transaction with The Carlyle Group to take the company private in a transaction valued at $6.3 billion, adding that it expects the transaction to include the issuance of a large amount of new debt that will significantly compromise credit quality.

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