Fitch assigns BBB+ to HCP notes

Fitch Ratings said it assigned a BBB+ rating to the $750 million 4% senior unsecured notes due 2025 issued by HCP, Inc.

Net proceeds will be used to pay a portion of the respective purchase prices of the Chartwell Retirement Residences ($849 million), a portfolio of 35 private pay senior housing communities, and a 705,000 square foot medical office building in Philadelphia ($161 million), as well as for general corporate purposes, including future acquisitions and investments or repayment of debt.

Fitch said the rating reflects HCP’s conservative capitalization and its positive effects, such as providing a sufficient buffer against the reduced rent from its largest tenant, HCR Manorcare, enabling ratings stability.

The agency expects HCP will be able to restore key credit metrics from the weaker end of the range to past levels over the next one-to-two years via organic growth, given its largely triple-net lease portfolio with contractual rental escalators.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.