Moody's rates Aviv add-on B1

Moody's Investors Service said it assigned a B1 rating to the add-on offering of senior unsecured notes of Aviv Healthcare Properties LP.

The outlook is stable.

The proceeds are expected to be used to reduce the amounts outstanding under Aviv's secured acquisition facility due 2015 with two one-year extensions to 2017.

This is a credit positive both from the perspective of extending debt maturities to 2019 and in terms of replacing secured debt with unsecured, Moody's said.

The ratings continue to reflect the REIT's success at profitably operating a nationally diversified portfolio of skilled nursing facilities, as well as its small size and its private company status, the agency said.

The ratings also consider its relatively low profitability and heavy dependence on government reimbursements, Moody's said.

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