With occupancy rates holding steady (except for some very low-performing facilities), short-term debt
performance stabilizing and permanent debt performance starting to become stable, skilled nursing facilities seem to be holding their own at the moment.
In its reluctance to issue short-term debt
, Germany is unusual in Europe and among industrialized countries.
Long-Term Debt due by 1996 (Non-Peso) BB BBB- Long-Term Debt due 1997-1999 (Non-Peso) BB BBB- Long-Term Debt due after 1999 (Non-Peso) BB BB+ Long-Term Debt (Peso) A- A- Short-Term Debt
(Non-Peso) D-4 D-3 Short-Term Debt
(Peso) D-1- D-1
Long-Term Debt due by 1996 (Non-Peso) BBB- BBB Long-Term Debt due 1997-1999 (Non-Peso) BBB- BBB- Long-Term Debt due after 1999 (Non-Peso) BB+ BB+ Long-Term Debt (Peso) AA- AA+ Short-Term Debt
(Non-Peso) D-3 D-2 Short-Term Debt
(Peso) D-1 D-1+
Pro forma maximum annual debt service coverage on all debt, assuming a 30-year amortization of short-term debt
under the capital line of credit, is 2.
The ratings consider that the proposed transaction will extend the debt maturity profile and mitigate refinancing risks, as 75% of the proceeds will repay short-term debt
Credit analysis for agricultural processors and merchandisers considers leverage ratios that exclude short-term debt
used to finance readily marketable inventories (RMIs) that are hedged against price risk.