S&P rates Skilled Healthcare notes CCC+

Standard & Poor's said it assigned its CCC+ rating to Skilled Healthcare Group Inc.'s proposed $200 million senior subordinated notes due 2013.

Existing ratings, including the B corporate credit rating and B first-lien bank loan with recovery rating of 3, were affirmed.

The outlook is stable.

When Skilled Healthcare Group completes an expected amendment to its bank facility, the CCC+ bank loan rating and recovery rating of 5 on its second-lien bank loan will be withdrawn because the loan is being repaid with proceeds from the new debt.

The low-speculative-grade ratings reflect the risks associated with the company's concentration in two difficult states (California and Texas), its exposure to uncertain third-party reimbursement and high leverage due to an aggressive financial policy, S&P said.

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