S&P: Care Capital notes BBB-

S&P said it assigned a BBB- rating to Care Capital Properties LP's $500 million senior unsecured notes due 2026.

The agency also said it assigned a 2 recovery rating, indicating 70% to 90% expected default recovery.

The parent company, Care Capital Properties Inc., fully and unconditionally guarantees the notes.

The BB+ corporate credit rating on Care Capital Properties is unchanged and the outlook remains stable.

The proceeds will be used to repay all of the indebtedness remaining under its $600 million term loan maturing August 2017 and the remainder of the proceeds to repay a portion of the debt outstanding under its $800 million term loan due in 2020, S&P said.

The indenture governing the notes contains covenants typical of U.S. equity REITs, including a limitation on total debt and secured debt, the agency said, as well as a minimum debt service coverage requirement and maintenance of total unencumbered assets.

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