S&P: Genoa Healthcare view negative

Standard & Poor's said it revised its outlook on Genoa Healthcare Group LLC to negative from stable and affirmed the B corporate credit rating.

The revised outlook reflects the tightening of the company's bank covenants in December. Based on S&P's expectation of the company's financial performance for the balance of 2007, which is comparable to the first half of the year, the agency said the cushion relative to the covenants at that time may be thin, and this scenario could hurt liquidity.

The low speculative-grade ratings on Genoa Healthcare reflect the risks associated with the company's concentration in one state, its exposure to uncertain third-party reimbursement and an aggressive financial policy, S&P said.

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