Novacare (NOV) breaking out... Message Board

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Biotech / Medical : Novacare (NOV) breaking out...

NOV 15.63

+0.6%

9:30 AM EST

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To: wbASSETt who wrote (382)	4/8/1999 1:21:00 PM
From: Jim Oravetz	Read Replies (1) of 420

I guess these folks are not too impressed with the recent news. 4/8/99 NovaCare Debt Ratings Lowered by S&P, Remains Watch-Negative NEW YORK (Dow Jones)--Standard & Poor's said lowered its corporate credit rating for NovaCare Inc. to single-B-minus from single-B-plus. The rating on the company's convertible subordinated debt was lowered to triple-C from single-B-minus. The ratings remain on CreditWatch with negative implications, where they were placed November 3, 1998. Although the recently announced sale of NovaCare's orthotic and prosthetic (O&P) service business should improve the company's capital structure and financial flexibility, the improvement is offset by the ongoing deterioration in the remaining long-term care business. Moreover, the proceeds from the sale are expected to be used to repay bank debt, and the refinancing of convertible debt due Jaodingly, continued operating losses in the long-term care business could lead to a lower rating. The rating actions reflect the significant reduce continued weak near-term prospects for reduced reimbursement and utilization. S&P will continue to monitor developments and communicate with management regarding the continued impact of PPS on operations and the company's challenges in meeting financial obligations. Jim

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