Fitch Raises Nationwide Health Properties Ratings

NEW YORK (AP) — Fitch Ratings on Thursday raised its ratings on Nationwide Health Properties Inc., citing an improvement in the health care real estate investment trust's debt service coverage ratios.

Fitch raised Nationwide Health's issuer default, unsecured bank credit facility and senior unsecured notes to "BBB" from "BBB-."

The firm also upgraded the company's preferred stock to "BBB-" from "BB."

The rating outlook is stable.

Fitch noted that the REIT's debt plus preferred stock to undepreciated book capital was 41.2 percent as of Dec. 31, down from 48 percent at the close of 2007.

"The rating action acknowledges the increased diversity of NHP's asset base, particularly as a result of its agreement with Pacific Medical Buildings to acquire 18 medical office buildings for $747.6 million," Fitch said.

The acquisition has grown Nationwide Health's asset base, increased its exposure to new medical office buildings and decreased its reliance on revenue from its top senior housing and long-term care operators, Fitch noted.

The agency said its stable outlook on Nationwide Health centers on the company's strong liquidity position, which is supported by $82.3 million of available cash and an untapped $700 million unsecured credit facility.

As of Dec. 31, Newport Beach, Calif.-based Nationwide Health Properties had investments in 582 health care facilities in 43 states.

Nationwide Health's shares rose 58 cents, or 2.8 percent, to $21.60 in afternoon trading.