S&P Global Ratings upgraded EPR Properties' corporate credit rating to BBB- from BB+, with a stable outlook.

The rating agency affirmed the BBB- issue-level rating on the company's senior unsecured notes, while raising the rating on its preferred shares to BB from B+.

The rating agency's rationale for the upgrade reflects the company's continued improvement in key credit metrics and its strategy of funding growth in a leverage-neutral manner.

The stable outlook reflects the rating agency's opinion that the equity-funded purchase of the CNL Lifestyles portfolio will result in an improvement in the leverage and coverage ratios of EPR.

S&P also expects the company to maintain a conservative financial strategy, with a debt-to-EBITDA ratio of roughly 6.0x.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.