Moody's ups HCP outlook to positive

Moody's Investors Service said it revised its outlook on HCP, Inc. to positive from stable and affirmed the company's Baa3 senior unsecured ratings.

The positive outlook reflects the enhanced size and scope of HCP's portfolio, reduced leverage and stronger credit metrics, the agency said.

According to Moody's, HCP has grown to $13.3 billion in gross assets at the end of 2009 from $4.2 billion at the end of 2005 through various acquisitions.

Moody's said the larger and more diversified platform has lessened tenant concentration and reduced reliance on revenues derived from government reimbursement, and it expects HCP will continue working to reduce exposure to weaker tenants.

The agency also said that HCP has a good liquidity and funding profile due to its large credit line and manageable near-term debt maturities through 2011.

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