Moody's ups Res-Care notes to B1, rates loans Ba1

Moody's Investors Service said it upgraded the corporate family and probability of default ratings of Res-Care, Inc. to Ba3 from B1 and the rating on the company's $200 million senior unsecured notes to B1 from B3.

Additionally, Moody's assigned Ba1 ratings to the company's proposed $175 million senior secured term loan and $175 million senior secured revolving credit facility.

Moody's also assigned to Res-Care a speculative grade liquidity rating of SGL-2.

The outlook is stable.

The credit facilities will be used to refinance the company's existing term loan and revolving credit facility, though the revolver size will decline by $100 million to $175 million from $275 million, the rating agency said.

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