Moody's ups Extendicare

Moody's Investors Service said it upgraded Extendicare Health Services Inc.'s senior implied rating to Ba3 from B1, its $150 million 9.5% senior unsecured notes due 2010 to B1 from B2, and its senior unsecured issuer rating to B1 from B2.

Moody's said the ratings upgrade reflects the improvement in operations over the last few years, as well as the material reduction in leverage over the same period.

The rating agency also assigned a Ba2 rating to Extendicare's $155 million senior secured revolving credit facility due 2009 and a B2 rating to the company's $125 million senior subordinated notes due 2014.

The rating action follows the announcement by the company that the new note issuance, along with cash on the balance sheet and borrowings under an amended and restated revolving credit facility, will be used to tender for the company's $200 million 9.35% senior subordinated notes due 2007.

The outlook is stable.

© 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.