Summary: Gentiva Health Services Inc.

Standard & Poors, April 2011

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

Abstract
The ratings on Atlanta based home health provider Gentiva Health Services Inc. reflects the company's aggressive financial risk profile arising from the $1 billion debt-financed acquisition of hospice provider Odyssey Healthcare in 2010. In addition, the company's significant reliance on uncertain Medicare funding and keen competition highlights Gentiva's weak business risk profile, despite the company's position as a leading provider in the home healthcare industry. Expected Medicare rate cuts offsets Standard & Poor's Ratings Services expectations for revenue to increase by at least 30% in 2011 to reflect a full year of added revenue from the Odyssey acquisition and ability to grow organically; this should sustain EBITDA margins and Gentiva's adequate liquidity position. We expect the company to focus on...

Companies mentioned in this report are: Gentiva Health Services Inc.
Action: Review

Gentiva Health Services Inc.

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