Standard & Poor's Ratings Services has revised the outlook to negative from stable and affirmed the "BB+" rating on Zanesville, Ohio-based Genesis Healthcare System's $293 million of series 2013 revenue bonds.
"The negative outlook primarily reflects our view of Genesis' operational challenges in fiscal 2015 after essentially a break even performance in 2014; and unrestricted reserves, while generally stable, that remain under pressure after Genesis' sizable 2013 debt issuance," said S&P credit analyst Kevin Holloran.