Moody's assigns Res-Care loans Ba2

Moody's Investors Service said it assigned Ba2 ratings to Res-Care, Inc.'s proposed $250 million senior secured revolving credit facility, $200 million senior secured term loan A and $200 million senior secured delayed-draw term loan A.

Concurrently, Moody's changed the probability of default rating to B1-PD from Ba3-PD and affirmed the company's Ba3 corporate family rating, B1 rating on the company's existing $200 million senior unsecured notes and 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 A and revolving credit facility, as well as fund a $130 million dividend to Res-Care shareholders.

The delayed-draw term loan is anticipated to be drawn within 12-months of closing to refinance the existing 10æ% senior unsecured notes.

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