Fitch Ratings upgraded its long-term issuer default rating and senior unsecured debt rating on HCP Inc. to BBB+ from BBB.
The outlook on the issuer default rating is stable.
The rating agency attributed the action to HCP's willingness and ability to maintain leverage below 6x, relatively better access to capital and expectations that the company will continue to operate with sizable liquidity. Other factors include improved portfolio quality as a result of the healthcare real estate investment trust's exit from the skilled nursing facility market, which the rating agency views as among the most challenged operating environments across healthcare settings.
The rating agency noted that it no longer views HCP as disadvantaged in the debt and equity capital markets because of previous portfolio concerns.
