S&P Global Ratings changed its outlook on Medical Properties Trust Inc. and its operating partnership to stable from negative.
The rating agency also affirmed its BB+ corporate credit rating on the companies at the same time. S&P revised the outlook as it expects Medical Properties' master lease restructuring deal with troubled tenant Adeptus Health Inc. will not likely result in major missed cash flows and marginal capital expenditures.
Adeptus Health is the company's sixth biggest tenant. As part of the restructured master lease, Deerfield Management Co. agreed to cover Adeptus Health's bank debt obligations and provide it with additional funds during the course of its bankruptcy process.
Deerfield is also expected to assume 80% of Adeptus Health's tenancy at its rented facilities at current rental rates, which will likely lead to minimal rent concessions and capital expenses for Medical Properties, according to S&P.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.