S&P rates RehabCare BB-

Standard & Poor's said it assigned a BB- corporate credit rating to RehabCare Group and a BB rating to the proposed issue of a senior secured bank facility with a recovery rating of 2.

The outlook is stable.

"The rating on RehabCare reflects the company's relatively narrow operating focus in its two main businesses; rehabilitative program management services, and operator of specialty hospitals including long-term acute care hospitals and inpatient rehabilitation hospitals," S&P analyst David Peknay said in a statement.

This subjects the company to reimbursement and regulatory risk, as a large percentage of the revenue generated by its specialty hospitals are derived from government sources, the agency noted.

Pro forma lease-adjusted debt-to-EBITDA should reach about 3.5x, the agency said.

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