S & P sees 'positive' outlook for Skilled Healthcare
Standard & Poor's Ratings Services on Tuesday raised the outlook for nursing home operator Skilled Healthcare Group Inc. to "positive" from "stable" and affirmed its "B" corporate credit rating.
S&P said the company's operating prospects are improving. Revised Medicare payment classifications outweigh its exposure to Medicaid budget pressures, analyst David Peknay wrote.
The company's credit rating, which is non-investment grade, could be upgraded within a year if it can sustain its higher profit margin, Peknay wrote.
Shares of the Foothill Ranch, Calif.-based company fell 5 cents to close at $13.02.