DBRS confirms Leisureworld notes

DBRS said it confirmed the rating of the series A senior secured debentures of Leisureworld Senior Care LP at A with a stable trend.

Since the company's initial public offering in 2010, its operating performance has improved, and leverage and debt service coverage has remained fairly stable, according to the agency.

Management remains committed to the expansion of its non-core business lines, however, as demonstrated by the continuing acquisition of unregulated retirement homes through Leisureworld Senior Care Corp., the agency noted.

Adjusted debt to EBITDA was 7.4 times by year-end 2011, improving from 7.8 times in 2010, as a result of the year-over-year rise in EBITDA, the agency said.

The ratings are based primarily on the provincial regulatory framework governing the operations of long-term care providers, where high operating standards are required to retain licenses imposing significant barriers to entry, a stable and predictable government funding base, the industry's strong demand outlook and the degree of debt affordability, as well as the management of the company's operations, DBRS said.

© 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.