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TEXT-S&P rates Ventas Realty LP guaranteed bonds
September 28, 2012 / 7:00 PM / 5 years ago

TEXT-S&P rates Ventas Realty LP guaranteed bonds

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
 

New Rating
Ventas Realty L.P. (Guarantor)
$30 mil. Mtg.Rev.Bonds              BBB

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