Fitch gives BBB- to Omega Healthcare

Fitch Ratings said it assigned Omega Healthcare Investors, Inc. an issuer default rating of BBB-, unsecured revolving credit facility at BBB-, senior notes at BBB- and subordinated debt at BB+.

The outlook is stable.

The ratings reflect the strength of the company's metrics, with low leverage, high fixed-charge coverage, stable cash flows and exceptional liquidity due to no near-term maturities, which offset the largest credit concern - the focus on skilled nursing and assisted living facilities, according to the agency. Leverage was 4.8x as of March 31, between the 4.5x and 5.1x as of Dec. 31, 2009 and 2010, and is forecast to migrate to the mid-4.0x range through 2014 as the company acquires additional facilities funded evenly through debt and equity, Fitch said. Leverage is calculated as net debt-to-recurring operating EBITDA.

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