Moody's ups Omega Healthcare senior debt to B2

Moody's Investors Service said it has upgraded the ratings on Omega Healthcare Investors Inc., including the senior unsecured debt to B2 from B3 and series A and B cumulative convertible preferred stock to B3 from Caa2.

The outlook is stable.

Moody's said it is encouraged by the progress Omega has been making in solidifying its financial flexibility and addressing operational challenges. Omega has recently refinanced its two credit lines that were maturing in December 2003 and June 2005 with a longer term $225 million facility from GE Healthcare Financial Services. Moody's said it sees this refinancing as a plus, and Omega has no debt maturities for several years.

Earnings have also improved as Omega has sold properties, renegotiated leases with tenants and reduced expenses.

In addition, Moody's noted that Omega's fixed charge coverages have increased significantly over the past two years from 1.16x in 2001 to 1.77x at the end of the third quarter of 2003.

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