S&P says no change to Manor Care

Standard & Poor's said its rating on Manor Care Inc. (BBB/stable/--) is not affected by the company's announcement that it intends to redeem its outstanding 8% senior notes on Dec. 22.

S&P said Manor Care recently issued new convertible debt to fund share repurchases.

S&P said it expected the company to balance the use of cash between share repurchase activity and debt repayment such that its financial profile would remain consistent with the rating.

Should the company experience any future adverse changes in cash flow and liquidity, S&P said management is expected to continue to adhere to an investment-grade financial policy, making appropriate adjustments in its share repurchase activity.

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