Ventas, Inc. (NYSE:VTR) (“Ventas” or the “Company”) today announced that Moody’s Investors Service has raised the rating on the Company’s senior unsecured debt to Baa3 from Ba1, with a stable outlook. This action by Moody’s follows similar ratings upgrades from Fitch Ratings in July 2009 (unsecured debt raised to BBB from BBB-, with a stable outlook) and Standard & Poor’s Ratings Services in February 2008 (unsecured debt raised to BBB- from BB+, with a stable outlook). The Company’s senior unsecured debt now carries an investment grade rating from all three major ratings agencies.
In its statement, Moody’s indicated that: “The upgrade reflects the strength in the REITs balance sheet after significant de-leveraging activity in 2009. By 3Q09, net debt to EBITDA was 4.3X vs. 5.1X in 3Q08. Moody's expects this metric to remain under 5.0X, even as Ventas grows its portfolio. The upgrade also reflects the REIT's sound liquidity management through the credit crisis, strong fixed charge coverages (2.9X at 3Q09), and high quality property portfolio. Moody's also notes that Ventas has managed its senior living operating assets well as evidenced by its recent increase in earnings guidance for the fourth quarter.”
Ventas Chairman, President and Chief Executive Officer Debra A. Cafaro said, “We are extremely pleased that Moody’s raised its ratings on our senior unsecured debt to investment grade. We have worked hard to merit this improved rating, which reflects the continued strength of our balance sheet, our access to multiple capital markets and our significant liquidity. Ventas has an outstanding team that is committed to delivering enhanced value for all of our stakeholders through execution of a disciplined growth and diversification plan and maintenance of a strong credit profile.”