S&P: Manor Care unaffected

Standard & Poor's said Monday that the recent announcement by Manor Care Inc. (BBB/stable/--) that its board approved an additional share repurchase program of up to $100 million has no impact on the rating or outlook of the company.

Manor Care's operating performance has been good, and the company should continue to perform well in the current environment, the agency said. It continues to generate good free cash flow and has applied these funds toward both share repurchases and debt repayment.

S&P said that should the company experience any future adverse changes in cash flow and liquidity, such as a reimbursement cut in 2006, management is expected to adhere to an investment-grade financial policy, making appropriate adjustments in its share repurchase activity.

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