S&P rates Medical Properties notes BB, view positive

Standard & Poor's said it revised its outlook on Medical Properties Trust Inc. to positive from stable.

At the same time, the agency affirmed its BB corporate credit and senior unsecured notes ratings.

The agency also assigned a BB issue-level rating and a 3 recovery rating to the proposed €200 million issuance of unsecured senior notes due 2020. The 3 recovery rating indicates an expectation for meaningful (50% to 70%) recovery prospects for senior noteholders in the event of a payment default.

"The outlook revision reflects our expectation that the company will continue to improve its portfolio diversification following asset base growth of about 100% since 2010 and maintain stable to improving cash flow as a result of solid rent coverage and low lease rollover," S&P credit analyst Kenny Tang said in a news release.

The agency said it expects that accretive acquisitions will be financed in a manner that will support its assessment of an "intermediate" financial risk profile.

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