S&P cuts Ventas view to stable

Standard & Poor's said it revised its outlook on Ventas Inc. to stable from positive following news that it signed an agreement to purchase a portfolio of senior housing communities from Atria Senior Living Group for $3.1 billion.

The agency also said it affirmed its BBB- corporate credit rating and ratings on roughly $1 billion of senior unsecured and convertible notes.

The ratings reflect the company's satisfactory business risk profile, which is characterized by a large portfolio of health care properties that continue to provide more robust income growth than those for other commercial property types, S&P said.

The proposed acquisition will further expand and diversify the REIT's asset base, but it also may introduce greater cash flow volatility in the future, the agency said.

Although key credit metrics will weaken as a consequence of the pending acquisitions, an intermediate financial risk assessment assumes that leverage and coverage measures will still remain in line with those of similarly rated peers, S&P said.

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