Moody's reviews ResCare

Moody's Investors Service said it placed the Ba3 corporate family and probability-of-default ratings of ResCare, Inc. under review for downgrade following the announcement that a New Mexico jury had rendered a verdict of about $54 million in damages against the company.

Also on review are the company's senior secured revolver rated Ba1 (LGD2, 16%) and senior unsecured notes rated B1 (LGD5, 73%).

The agency said it expects the verdict will lead to non-compliance with the leverage covenant under a credit agreement.

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