Sept 28 - Standard & Poor's Ratings Services today assigned its 'BBB'
issue-level rating to the $30 million SIFMA Index Mortgage Revenue Bonds, Series
2012 issued by the Massachusetts Development Finance Agency and guaranteed by
Ventas Realty L.P. (guarantor), a wholly-owned operating subsidiary of Ventas
Inc. (see list).
The borrower is Woodbriar Senior Living LLC. The bonds are secured by a first
priority mortgage lien on a to-be constructed 125 unit assisted living
facility in Falmouth, Mass.., and security interest in all personal property,
a lien on gross revenues, a collateral assignment of the management agreement
and the related construction and design documents, construction contracts,
assignment of bank accounts, leases, and various other property documents.
Ventas Realty L.P. will provide a guaranty of payment of interest and
principal related to the $30 million bonds. Ventas will also be required to
guarantee lien free timely completion of the project and payment obligations
related to the bonds and any project cost over-runs
In our view, the guaranty is a legal, valid, binding, irrevocable, and
unconditional obligation of Ventas Realty L.P. as it relates to the full and
prompt payment of the bonds and interest when due and payable. As a result,
the guaranty shall be a senior obligation of Ventas Realty L.P. and rank
equally with the company's existing senior unsecured obligations.
RELATED RESEARCH AND CRITERIA
-- General Criteria: Guarantee Default: Assessing The Impact On The
Guarantor's Issuer Credit Rating, May 11, 2012
-- General Criteria: Methodology and Assumptions: Approach To Evaluating
Letter OF Credit-Supported Debt, July 6, 2009
-- Industry Economic And Ratings Outlook: North American REIT Ratings
Will Likely Remain Stable Despite Slowing Economic Growth, July 27, 2012
-- Key Credit Factors: Global Criteria For Rating Real Estate Companies,
June 21, 2011
Ventas Realty L.P. (Guarantor)
$30 mil. Mtg.Rev.Bonds BBB