S&P affirms Nationwide Health

Standard & Poor's said it affirmed Nationwide Health Properties Inc.'s BBB- corporate credit rating, BBB- senior unsecured debt rating and BB+ preferred stock rating. The affirmations affect $570 million in outstanding senior unsecured notes and $197 million in preferred stock.

The outlook is stable

S&P said the affirmed ratings reflect Nationwide's strengthened investment portfolio, which is characterized by improving rent coverage measures, long lease maturities and good occupancy levels. Furthermore, a higher level of private payments (64% of revenue), coupled with the current government reimbursement environment, should provide good near-term visibility for relative stability among Nationwide's operators.

The company's recently more aggressive growth appetite presents some additional risk, as using debt to acquire assets has resulted in higher leverage ratios. Concentration among tenants will continue to expose the company to credit risks, which can be amplified by potential shifts in government policy, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.