Moody’s might lift Quality Care

Moody’s Investors Service said it placed Quality Care Properties, Inc.'s ratings, including its Caa1 corporate family rating, on review for upgrade.

The agency said the review follows the announcement by Quality Care that it had entered into definitive agreements with Welltower Inc. and ProMedica Health System, Inc. under which Quality Care agreed to be acquired by Welltower for $20.75 per share in all-cash transaction.

Concurrently, ProMedica will assume the rights and obligations of Quality Care in relation to the HCR Manorcare Inc. sponsor agreement and will acquire HCR at the completion of its Chapter 11 bankruptcy process.

“The review for upgrade is based on Welltower's (Baa1 stable) stronger credit profile, including greater financial flexibility, scale and diversity,” Moody’s said in a news release.

The agency said it expects that at the close of the proposed transaction all of Quality Care’s rated debt will be repaid.

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