Moody's lifts Skilled Healthcare to SGL-2

Moody's Investors Service said it upgraded the speculative-grade liquidity rating of Skilled Healthcare Group, Inc. to SGL-2 from SGL-3 and affirmed the company's corporate family and probability-of-default ratings at B1, its $100 million senior secured revolving credit facility due 2015 and $330 million senior secured term loan due 2016 at Ba3 (LGD3, 37%) and its $130 million senior subordinated notes due 2014 at B3 (LGD6, 90%).

The outlook is stable.

The rating actions follow the closing of the company's $460 million refinancing transaction, and the agency said the upgrade of the speculative-grade liquidity rating incorporates its expectation that the company's liquidity should remain good over the next 12 to 18 months due to expected strong cash flow generation, ample availability under the revolving credit facility and sufficient headroom under the financial covenants.

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