Genesis HealthCare Corporation Announces Second Upgrade to Corporate Credit Rating2/17/2006
Kennett Square, PA -- 02/17/2006--
On February 16, 2006, Moody’s Investors Service raised its corporate credit rating on Genesis HealthCare Corporation (“GHC”) (NASDAQ:GHCI) to “Ba3” from “B1”. Moody’s also raised its rating on GHC’s 8% senior subordinated notes to “B2” from “B3” and assigned a “Ba2” rating to the Company’s $125 million revolving credit facility. In its release, Moody’s noted that the upgrade reflects GHC’s positive operating performance, and improved cash flow and credit metrics since the spin-off.
In December 2005, GHC also received an upgrade to its credit rating by Standard & Poor’s Rating Services. Commenting on the news, Chief Financial Officer Jim McKeon noted, “This second upgrade further validates our progress in reducing indebtedness and our commitment to a disciplined approach to cash flow and working capital management.”
About Genesis HealthCare Corporation
GHC is one of the nation's largest long-term care providers with over 200 skilled nursing centers and assisted living residences in 12 eastern states. GHC also supplies contract rehabilitation therapy to over 650 healthcare providers in 18 states and the District of Columbia.
Visit our website at www.genesishcc.com.
Statements made in this release, our website and in our other public filings and releases, which are not historical facts contain "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "may," “target,” “appears” and similar expressions. Such forward looking statements include, without limitation, expected reimbursement rates, including RUGs changes, our net operating loss carryforwards, our 2006 effective tax rate, agency labor utilization, wage rates, debt repayments, share repurchases, provider tax assessments, changes in state Medicaid rates, our plans to improve the operating performance of our Rehabilitation services segment and progress to date, the extent and effectiveness of our facilities renovation program, levels of lease expense, interest expense, depreciation expense, capital spending, and our anticipated results of operations for fiscal 2006. Factors that could cause actual results to differ materially include, but are not limited to, the following: costs, changes in the reimbursement rates or methods of payment from Medicare or Medicaid, or the implementation of other measures to reduce reimbursement for our services; efforts of third party payors to control costs; the impact of federal and state regulations; changes in payor mix and payment methodologies; competition in our business; an increase in insurance costs and potential liability for losses not covered by, or in excess of, our insurance; competition for and availability of qualified staff in the healthcare industry; our ability to control operating costs, and generate sufficient cash flow to meet operational and financial requirements; and an economic downturn or changes in the laws affecting our business in those markets in which we operate.
The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. We caution investors that any forward-looking statements made by us are not guarantees of future performance. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.