S&P ups Genesis Healthcare

Standard & Poor's said it raised Genesis Healthcare Corp.'s long-term corporate credit rating to BB- from B+ and its subordinated debt rating to B from B-.

The outlook is stable.

The upgrade is attributable to Genesis' improved financial profile and S&P's increased confidence in the company's commitment to a financial policy consistent with the new rating. This incorporates the potential impact of the impending reduction in Medicare reimbursement in January.

S&P said the ratings on Genesis HealthCare reflect the risks the company faces as a sizable participant in an industry (nursing homes) subject to potentially sharp cuts. S&P said this is somewhat offset by the geographical dispersion of the company's facilities, which include more than 200 nursing homes and assisted-living centers located in 12 states.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.