Moody's upgrades Omega Healthcare

Moody's Investors Service upgraded Omega Healthcare Investors, Inc.'s senior unsecured debt to B1 from B2 and confirmed its preferred stock at B3.

Moody's said the action is in response to Omega's completion of a net $24.7 million common equity issuance, the issuance of $200 million in senior unsecured notes and refinancing of its existing credit facility with a new $125 million senior secured revolving credit facility.

The 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 said it 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 common 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.

In addition, Moody's noted that Omega's fixed charge coverage has increased over the past two years from 1.16x in 2001 to 1.76x for 2003.

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