TEXT-S&P rates Health Care REIT notes 'BBB-'

March 28 - Standard & Poor's Ratings Services today assigned its 'BBB-'
rating to the $600 million 4.125% senior notes due 2019 issued by Health Care
REIT Inc. (HCN). The company will use proceeds from this offering to
repay existing indebtedness and for general corporate purposes.

Our rating on Toledo-based HCN reflects a "satisfactory" business risk profile
supported by the company's large and diversified health care portfolio that is
largely private pay (70%), seasoned management, and rent coverage that should
continue to produce stable cash flow. We acknowledge the company's significant
growth and the addition of exposure to senior housing assets structured
through taxable REIT subsidiaries, which could increase cash flow volatility
due to their sensitivity to economic trends. We view the financial risk
profile as "intermediate," marked by moderate leverage and fixed-charge
coverage (FCC), which is sufficient for the current platform and rating, and
adequate liquidity. The company has funded a majority its recent growth with
equity, and we expect HCN will continue to prudently underwrite and finance
new investments.

The positive outlook reflects our view that we may raise our rating on HCN
over the next 12-24 months if the company pursues accretive growth that it
finances prudently such that key credit metrics strengthen. This includes
sustaining FCC at or above 2.5x and debt-plus-preferred/EBITDA near 6.0x-6.5x
while maintaining adequate liquidity. An upgrade will also hinge on the smooth
integration of recent acquisitions, as well as the ability of its skilled
nursing facility operators to absorb recent and potential future cuts to
government reimbursement without any meaningful impact to HCN's rental stream.
We would revise our outlook to stable or lower our rating if HCN pursues
aggressive debt-financed growth or experiences integration challenges or
portfolio/tenant stress that causes FCC to fall below 2.3x for a prolonged
period.

RATING LIST
Health Care REIT Inc.
Corporate credit rating BBB-/Positive

New Rating
Health Care REIT Inc.
$600 mil. 4.125%
Senior unsecured notes BBB-