Moody's may lift Ventas, affirms Nationwide Health

Moody's Investors Service said it placed Ventas Inc.'s senior debt ratings at Baa3 on review for upgrade and affirmed Nationwide Health Properties, Inc.'s senior debt ratings at Baa2 and preferred stock ratings at Baa3.

These actions follow the announcement that Ventas will acquire all of the outstanding shares of Nationwide Health Properties in a stock-for-stock transaction valued at $7.4 million.

The outlook for Nationwide Health Properties remains stable.

The acquisition of Nationwide Health Properties provides Ventas with a deeper and broader health care real estate platform to expand its triple-net lease, operating and medical office businesses, according to the agency.

Net debt to EBITDA is expected to fall to about 5x at closing, down from 5.6x as of the fourth quarter.

Moody's noted that integration risk is a concern.

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