Fitch rates Ventas notes BBB+

Fitch Ratings said it assigned a BBB+ rating to the $600 million principal amount of 4% senior notes due 2019 issued by the operating partnership of Ventas, Inc., Ventas Realty, LP, and a wholly owned subsidiary of Ventas Realty, Ventas Capital Corp.

Ventas has an issuer default rating of BBB+, as well as $2 billion unsecured revolving credit facility, $2.8 billion senior unsecured notes and $701.9 million senior unsecured term loans rated BBB+.

The outlook is stable.

The notes are guaranteed by Ventas, Inc. on a senior unsecured basis and were priced at 99.489% of par to yield 4.084% to maturity, or 265 basis points over the benchmark treasury rate.

Proceeds will be used to repay debt outstanding under Ventas' unsecured revolving credit facility and for working capital and other general corporate purposes, including funding future acquisitions or investments.

Leverage is increasing but remains commensurate with a BBB+ rating, the agency said, with net debt to recurring operating EBITDA of 5.2x as of Sept. 30, 2011, pro forma for the Cogdell Spencer acquisition and senior unsecured note offerings.

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