Standard & Poor's Corp. has raised its ratings on Manor Care's debt to reflect the nursing home chain's solid profitability, conservative financial policies and cash generation from operations.
The Silver Spring, Md.-based long-term-care chain's senior rating was lifted to BBB from BBB- and its subordinated debt rating was upgraded to BBB- from BB+.
The New York-based credit-rating agency also revised the outlook on Hillhaven Corp.'s B- subordinated debt and B+ implied senior ratings to "positive." The ratings reflect the Tacoma, Wash.-based long-term-care chain's thin margins, exposure to Medicaid and modest debt-service coverage, the agency said. If Hillhaven invests conservatively and works to improve earnings and cash flow, its ratings could be raised in the near term.