Citing a large expansion and planned capital expenditures, Fitch has assigned a BB rating to more than $140 million in bonds issued on behalf of Presbyterian Retirement Communities Northwest and downgraded another $142.6 million from BB+ to BB-.
All of the bonds were issued by the Washington State Housing Finance Commission for PRCN or its Transforming Age brand between 2013 and this year.
Fitch, however, said the rating outlook remains stable.
PRCN, doing business as Transforming Age, is expanding its Skyline campus, which includes a 21-story tower with 77 new independent living units at a cost of about $116 million. The project entails construction and “fill-up risks” over a lengthy period of time, Fitch said.
TA includes three senior living facilities located in the Seattle metropolitan area, which has strong service area characteristics and favorable demographic indicators. TA offers a mix of life care, modified and monthly senior housing and various care options for residents. Independent and assisted living occupancy averaged 97% and 93%, respectively, during fiscal 2018 and 96% for both categories over the first nine months of fiscal 2019.
