Moody's rates Chemed loan Ba2

Moody's Investors Service said it assigned a Ba2 senior implied rating to Chemed Corp., Ba2 ratings to its proposed credit facilities, and a Ba3 rating to the company's existing senior notes. Moody's also assigned an SGL-1 liquidity rating to the company.

Ratings assigned include a Ba2 rating for the $140 million senior secured revolver maturing 2010 and $85 million senior secured bank debt maturing 2010 as well as a Ba3 rating for the existing $150 million 8.75% senior notes due 2011.

The outlook is stable.

Moody's said the ratings reflect the company's moderately high leverage, its interest in acquisitions in the hospice segment and of Roto-Rooter franchises, the high level of competition in both segments, and Vitas' reliance on Medicare reimbursement for substantially all its revenues.

Supporting factors, Moody's said, include the company's favorable recent operating performance, which is driven by strong fundamentals in the hospice segment and a turnaround at Roto-Rooter, the diversification resulting from the operation of two disparate businesses, the company's leading position within both segments, the company's relatively conservative stance on financial leverage, and the company's strong liquidity position.

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