S&P gives Skilled Healthcare loan BB-

Standard & Poor's said it assigned its BB- rating, one notch higher than the corporate credit rating. to Skilled Healthcare Group Inc.'s proposed $330 million senior secured term loan maturing in 2016 and its $100 million revolving credit facility maturing in 2015.

The recovery rating on these debt issues is 2.

The outlook is stable.

"The speculative-grade rating on Foothill Ranch, Calif.-based Skilled Healthcare Group Inc. reflects the company's vulnerabilities tied to its geographic concentration, reimbursement risk, competition, and relatively aggressive growth strategy," said S&P credit analyst David Peknay.

As a moderate-size company in a limited number of markets, Skilled Healthcare's weak business risk profile reflects uncertainty tied to potentially adverse shifts in local economic and political developments and government and managed care reimbursement in its key areas, the agency noted.

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