New York, December 08, 2014 -- Moody's Investors Service confirmed the B1 Corporate Family Rating and B1-PD Probability of Default Rating of Kindred Healthcare, Inc. The confirmation of the ratings concludes the review of Kindred's ratings that was initiated on October 9, 2014 when the company announced that it had entered into a definitive agreement to acquire Gentiva Health Services, Inc. (Gentiva) for $1.8 billion. Moody's also assigned a B2 rating to Kindred's proposed offering of an aggregate $1.35 billion of senior unsecured notes. The proceeds of the notes will be used, along with previously issued equity and a draw on the company's revolver, to fund the acquisitions of Gentiva and Centerre Healthcare Corporation (Centerre). Moody's also upgraded the rating on Kindred's senior secured credit facilities to reflect the benefit of additional unsecured debt that would be expected to absorb losses in default ahead of the senior secured creditors. Finally, the rating on the company's existing senior notes was also upgraded, narrowing the notching between the instrument rating and the Corporate Family Rating as the senior unsecured class of debt now represents the preponderance of debt in the capital structure. The rating outlook is stable.

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