S&P rates Aviv, note B+

Standard & Poor's said it assigned a B+ corporate credit rating to Aviv REIT Inc. and two of its subsidiaries, Aviv Healthcare Properties LP and Aviv Healthcare Capital Corp.

The agency also said it assigned a B+ rating and a recovery rating of 3 to its proposed $200 million senior unsecured note. The 3 recovery rating indicates 50% to 70% recovery in a default.

The note is being co-issued by Aviv Healthcare Properties and Aviv Healthcare Capital and guaranteed by Aviv and several of its other operating subsidiaries, S&P said.

The outlook is stable.

The rating reflects the company's aggressive financial risk profile, which is marked by moderate overall debt levels and a manageable debt maturity schedule against higher levels of secured, floating-rate debt and low debt coverage, S&P said.

The agency said it considers the company's business risk profile to be weak, given its heavy reliance on Medicaid reimbursement to drive tenant revenues.

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