S&P: Aviv on positive watch

Standard & Poor's said it placed Aviv REIT Inc.'s B+ corporate credit rating and rating on the company's senior unsecured notes on CreditWatch with positive implications.

The positive watch follows the company's filing of a registration statement to raise about $300 million through an initial public offering, said Matthew Lynam, an S&P analyst.

The proceeds will be used to repay existing debt and for general corporate purposes, including the potential acquisition of properties, the agency said.

The CreditWatch placements reflect an expectation that S&P could raise the ratings one to two notches if the proposed transaction closes as planned, S&P said.

The transaction would meaningfully alter the company's financial risk profile by reducing leverage, eliminating almost all secured debt and enhancing Aviv's access to capital, the agency said.

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