S&P lifts Res-Care

Standard & Poor's said it raised its ratings on Res-Care Inc., including the corporate credit rating, which was raised to BB- from B+.

The outlook is stable.

S&P added that the senior secured debt rating was raised to BB from BB- and the senior unsecured debt rating was raised to B+ from B, noting that this action reflects the company's ability to consistently expand margins despite a flat reimbursement environment and the resulting improvement in its financial profile.

The agency said that the rating on Res-Care reflects the company's narrow operating focus and the potential for reimbursement rate pressures from government and related payors dealing with overburdened budgets.

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