Moody's may cut Mariner Health

Moody's Investors Service said it placed the ratings of Mariner Health Care Inc. under review for possible downgrade following the announcement that Mariner Health has agreed to be purchased by National Senior Care for $30 in cash for each of Mariner Health's outstanding common share plus the assumption or satisfaction of Mariner Health's existing debt by National Senior Care.

The following ratings were placed under review: $85 million senior secured revolving credit facility due 2007, rated Ba3; $135 million senior secured term loan due 2009, rated Ba3; the B1 senior implied rating; the B2 senior unsecured issuer rating; and the $175 million 8.25% senior subordinated notes due 2013, rated B3.

According to Moody's, the rating review will focus primarily on whether the debt securities are assumed by National Senior Care, whether they remain outstanding, or whether the debt securities are repaid in full and all commitments canceled.

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