Fitch affirms Ventas

Fitch Ratings said it affirmed the ratings of Ventas, Inc. and two of its subsidiaries, Ventas Realty, LP and Ventas Capital Corpo., as follows: issuer default rating, $1 billion unsecured credit facility, $750 million senior unsecured notes and $230 million senior unsecured convertible notes at BBB and preferred stock at BB+.

The outlook is stable.

The agency said the affirmation centers on the company's robust cash flow from health-care real estate in excess of its fixed charges. The company's portfolio exhibits geographical and property segment diversification, Fitch said, and Ventas has low leverage for the rating category and a management team with a successful track record.

Offsetting these strengths are operator and manager concentration across the portfolio and the weak financial condition of Sunrise Senior Living, Inc., one of Ventas's major property managers, the agency said.

The net debt-to-recurring operating EBITDA was 4.2 times as of June 30.

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