S&P: Health Care Property on watch

Standard & Poor's said it placed its BBB corporate credit and senior note ratings and its BBB- preferred stock rating on Health Care Property Investors Inc. on CreditWatch with negative implications.

The agency said that the CreditWatch placements follow the company's announcement that it has

entered into a definitive agreement to acquire Slough Estates USA Inc. (not rated) for $2.9 billion, including the assumption or refinancing of $1.2 billion of debt.

The acquisition is fully priced, representing a 6.3% yield based on 2008 expected net operating income, S&P said.

According to the agency, this transaction is expected to be debt-financed initially, which will result in a higher leverage profile, in the mid-to-high 60% area.

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