Fitch cuts Health Care REIT view to stable

Fitch Ratings said it has affirmed the BBB- ratings on the outstanding senior unsecured securities of Health Care REIT and the BB+ rating on the company's outstanding preferred stock.

Fitch said it also revised the company's outlook to stable from positive.

The rating is supported by the company's diverse portfolio of 426 facilities dispersed among 37 states, along with careful management of debt maturity schedule in which less than 5% of debt matures each year through 2007, Fitch said. The company has demonstrated strong access to the debt and equity markets as evidenced by its recent $100 million equity raise, Fitch said.

Credit concerns include a marginal decline in debt service coverage ratios and a modest increase in leverage, Fitch said. Fitch said it is optimistic that the strengthening of the industry will lead to increased rents, which should result in corresponding increases in rents and debt service coverage ratios, but those improvements have yet to materialize.

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