S&P Global Ratings upgraded CareTrust REIT Inc.'s corporate credit rating to B+ fromB.
The rating agency also upgraded its issue-level rating on thecompany's senior unsecured notes to BB- from B+. Its recovery rating on the companyis 2, reflecting "substantial recovery" expectations in case of a paymentdefault.
The outlook is stable.
S&P said the ratings upgrade, among other things, reflectthe company's enhanced credit metrics and liquidity profile after its $111 millionequity offering in lateMarch.
The stable outlook, meanwhile, is based on S&P's expectationfor CareTrust REIT to pursue acquisitions in "at least a leverage-neutral"approach, and that its cash flows from existing properties will remain stable.
S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.