S&P affirms nursing homes

Standard & Poor's said it affirmed the ratings on six for-profit nursing home chains, including Drumm Investors LLC (rated B+), Genoa Healthcare LLC (B), HCR Healthcare LLC (B), Kindred Healthcare Inc. (B+), Skilled Healthcare Group Inc. (B) and Sun Healthcare Group Inc. (B).

The ratings were removed from CreditWatch, where they were placed with negative implications Aug. 3.

The outlook on Genoa Healthcare is negative, while the outlook on the five other companies is stable.

The affirmations reflect the view that as the severity of the reimbursement cuts to the nursing home industry become apparent, it may become politically difficult for the Centers for Medicare and Medicaid Services to implement another significant cut in the near future, according to the agency.

At this time, uncertainty remains regarding the specifics of the mandated cut in 2013 of up to 2% as required under the Budget Control Act of 2011, S&P said.

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