Moody's may up Omega Healthcare

Moody's Investors Service said it has placed the ratings of Omega Healthcare Investors Inc., including the senior debt at B2, on review for upgrade.

Moody's said an upgrade will be contingent upon the completion of the proposed common equity issuance and refinancing of Omega's existing credit facility with a new $125 million senior credit facility. Should these events occur, Moody's would anticipate an upgrade to B1 of the REIT's senior debt, and a rating confirmation at B3 of its preferred stock.

The agency said these rating actions reflect the significant progress that Omega continues to make in executing its strategic plan, solidifying its financial flexibility and addressing operational challenges.

Moody's is encouraged by the progress Omega has been making in selling and repositioning its healthcare properties, renegotiating with tenants, redeeming and issuing preferred shares, accessing the equity market and refinancing its lines of credit. Omega has no significant debt maturities for several years. Earnings have also improved as Omega has reduced expenses.

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