S&P: Ventas outlook positive

Standard & Poor's said it revised the outlook on Ventas Inc. to positive from stable after the company said it plans to acquire its less leveraged competitor Nationwide Health Properties Inc. in a stock-for-stock deal valued at $7.4 billion.

The BBB- corporate credit rating was affirmed.

"In our opinion, the proposed Nationwide acquisition could modestly improve a business risk profile that we view to be satisfactory by reducing single tenant concentration while offsetting some of the cash flow volatility that we anticipate could result from another large pending acquisition of a portfolio of senior housing communities from Atria Senior Living Group," S&P analyst James Fielding said in a statement.

"We also expect that the acquisition of this lower-leveraged competitor could strengthen Ventas' intermediate financial risk profile."

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