New York, March 06, 2014 -- Moody's Investors Service commented that Select Medical Corporation's (a wholly owned subsidiary of Select Medical Holdings Corporation, collectively Select) proposed offering of $110 million of senior unsecured notes due 2021 is credit negative. The add-on to the company's outstanding unsecured notes, which will be used to fund a repurchase of shares from affiliates of Welsh, Carson, Anderson & Stowe, will increase leverage and interest costs. However, there is no change to the company's ratings at this time, including the B1 Corporate Family Rating and the B1-PD Probability of Default Rating. The company's instrument ratings are also unchanged but the LGD loss estimates will be revised to reflect the increase in the amount of unsecured debt in the capital structure. The stable rating outlook is unchanged.
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