S&P rates Ventas note BBB-

Standard & Poor's said it assigned a BBB- rating to a proposed $200 million 6½% senior note offering due 2016 to be issued by affiliates of Ventas Inc. (BBB-/stable/--).

The notes will be issued by Ventas' operating partnership, Ventas Realty LP, and a wholly owned subsidiary, Ventas Capital Corp.

The agency said it expects the notes to be issued at a discount to par and that Ventas will use proceeds to fund a portion of a previously announced tender offer for up to $310 million of the REIT's outstanding unsecured notes due 2010, 2012, 2014 and 2015.

Ratings reflect the REIT's solid market position and diversified portfolio of generally high-quality health care assets and an appropriately capitalized balance sheet, the agency said.

The agency said it expects that modest earnings pressure could weigh on currently solid fixed-charge coverage levels of 2.6x in 2008, as demand for senior housing weakens broadly amid deteriorating economic conditions.

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