Fitch rates Care Capital notes BBB-

Fitch Ratings said it assigned a BBB- rating to the senior unsecured notes due 2026 issued by Care Capital Properties, LP, the operating partnership of Care Capital Properties, Inc.

The ratings reflect the strength of Care Capital's headline metrics and industry-tenured management team, which is offset by its focus on skilled nursing and post-acute facilities and immature capitalization, Fitch said.

The capitalization issue will be largely addressed upon a successful completion of this issuance and in conjunction with the recent private placement, term loan and other swap agreements that reduced the company’s reliance on shorter tenor, floating-rate bank debt, the agency said.

Fitch said it expects Care Capital to operate within its targeted capitalization through 2017.

The agency said it assumes its leverage will be sustained in the 4.5x to 5x range before adjusting for the timing effects of acquisitions.

Care Capital was created through a spin-off of the majority of Ventas, Inc.'s skilled-nursing properties leased to private operators in August 2015, Fitch explained.

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