Fitch rates Omega loan BBB-

Fitch Ratings said it assigned a BBB- rating to the $200 million unsecured term loan due 2017 entered into by Omega Healthcare Investors, Inc.

The loan bears interest at a rate based on the company's credit ratings and is currently priced at Libor plus 175 basis points.

At closing, the company had $100 million in borrowings under the term loan facility with up to 120 days to borrow the full amount available, Fitch said.

The proceeds will be used to repay amounts outstanding on the line of credit facility and for future acquisitions.

The term loan was entered into in conjunction with a new credit facility. The term loan and line of credit facility are subject to the same covenants as the previous credit facility, the agency said.

The company has an issuer default rating of BBB-, unsecured revolving credit facility rating of BBB-, senior unsecured notes rating of BBB- and subordinated debt rating of BB+.

The ratings reflect the strength of the company's metrics, including low leverage, high fixed-charge coverage, stable cash flows and exceptional liquidity due to no near-term maturities, the agency said.

Those positives offset the largest credit concern - the company's focus on skilled nursing and assisted living facilities, Fitch said.

The high percentage of government reimbursement and the corresponding regulatory risk to operators of these facilities may place pressure on operator earnings, the agency said.

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