Fitch: Ventas notes BBB+

Fitch Ratings said it assigned a BBB+ rating to the senior unsecured notes due 2026 issued by Ventas Realty, LP, the operating partnership of Ventas, Inc.

Ventas Realty also has an issuer default rating of BBB+ and stable outlook.

The ratings reflect the company’s diverse portfolio of health care properties, demonstrated and consistent access to multiple sources of capital, adequate liquidity and a deep management team, Fitch said.

These strengths are tempered by leverage that has increased and now remains at closer to 6x than 5x, the agency said.

Other credit concerns include the potential for higher volatility in operating cash flows through the cycle given the company's REIT Investment Diversification and Empowerment Act (RIDEA) structured investments and broader concerns surrounding the rapid growth of healthcare REITs, Fitch explained.

The agency said it expects the company’s leverage to remain at about 6x.

With leverage near the rating sensitivity for negative momentum, the company also has a thinner cushion against potential deterioration in recurring operating EBITDA than in prior years should there be a decline in the RIDEA portfolio or tenant credit issues in the net lease portfolio, the agency added.

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