Fitch ups Health Care REIT

Fitch Ratings said it upgraded Health Care REIT's issuer default rating, unsecured bank credit facility, senior unsecured notes and convertible senior unsecured notes to BBB from BBB-. The agency lifted the rating on preferred stock to BBB- from BB+.

The outlook is stable.

The rating upgrade reflects the increase in portfolio size and diversity over the past several months, which now includes a sizable component of medical office buildings, outpatient facilities and specialty hospitals, Fitch said.

The added facilities further decrease the company's reliance on revenue from its top facility operators and reduces its exposure to government reimbursement risk, the agency said.

Fitch said it expects the company to maintain debt service coverage ratios and leverage metrics within historical ranges. The company's reported fixed charge coverage of 2.5 times as of March 31 and its unencumbered asset coverage was 1.9 times.

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