Moody's lifts Omega outlook to positive

Moody's Investors Service said it affirmed the Ba3 senior unsecured debt rating of Omega Healthcare Investors, Inc. and revised the outlook to positive from stable.

The agency said the positive outlook reflects the REIT's announcement of its agreement to acquire up to $860 million of skilled nursing facilities, which is expected to result in increased size, tenant diversification and investment opportunities over the longer term. The outlook also reflects Moody's expectation that Omega will execute this transaction while preserving its strong credit metrics. At the end of the third quarter, Omega's net debt-to-EBITDA ratio was 3 times.

Moody's believes Omega's portfolio concentration in skilled nursing facilities, operator concentrations, still modest size and reliance on government reimbursement remain key credit challenges.

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