The lowered rating reflects our concern regarding RVM's concentrated debt profile, with 100% variable-rate debt outstanding, coupled with historically limited and further declining debt liquidity. While RVM has historically had limited liquidity (relative to debt), the risk for non-renewal on the existing LOCs creates greater risk in the current challenging credit environment.
"The stable outlook reflects RVM's excellent demand characteristics and ongoing stable financial performance," said Standard & Poor's credit analyst Geraldine Poon. "Although liquidity, as measured by operating expenses, provides a cushion, we continue to have concerns regarding low cash-to-debt, very high debt burden, and weak coverage."
RVM is a nonprofit continuing-care retirement community located in Medford, Ore. Originally constructed in 1961, RVM has developed the campus by adding 296 cottages; a 75-unit, high-rise building (Skyline Plaza, financed with the series 1997 bonds); and a health services center, for a total of 582 independent-living, 45 assisted-living, 21 special care, and 72 skilled-nursing units.
RELATED RESEARCH
USPF Criteria: "Senior Living," June 18, 2007
Complete ratings information is available to RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Geraldine Poon, San Francisco (1) 415-371-5078
Stephen Infranco, New York (1) 212-438-2025
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280