Fitch cuts Ventas view to negative

Fitch Ratings said it affirmed the ratings Ventas, Inc. and two of its subsidiaries, Ventas Realty, Ltd. Partnership and Ventas Capital Corp., including their issuer default rating at BBB, $1 billion unsecured credit facility at BBB, $750 million senior unsecured notes at BBB, $230 million senior unsecured convertible notes at BBB, $200 million senior unsecured term loan at BBB and preferred stock rating at BB+.

The outlook has been revised to negative from stable.

The negative outlook reflects expected near-term weakening of the company's credit metrics pro forma for the acquisition of the real estate assets of Atria Senior Living Group from private equity funds managed by an affiliate of Lazard Real Estate Partners, Fitch said.

The purchase price for the Atria transaction of $3.1 billion is expected to be funded initially via common share consideration of $1.35 billion, $150 million of cash and assumed mortgage debt, the agency said.

The affirmation reflects the credit strengths associated with the transaction, Fitch said.

Pro forma for the Atria transaction, the company's healthcare properties will feature significantly less operator concentration, the agency said, and the portfolio will exhibit broader geographical and property segment diversification.

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