Fitch Rates Health Care REIT, Inc.'s $152MM Convertible Senior Notes 'BBB'

NEW YORK, NY--Fitch Ratings has assigned a 'BBB' rating to the newly issued $152 million 3.0% convertible senior notes due 2029 offered by Health Care REIT, Inc. The Rating Outlook is Stable.

The company intends to use the net proceeds from this offering to repurchase a portion of its 4.75% convertible senior notes due 2026 and 2027.

Based in Toledo, Ohio, Health Care REIT, Inc. is a real estate investment trust that invests across the full spectrum of senior housing and health care real estate. The company also provides property management and
development services. As of March 31, 2010, the company's portfolio consisted of investments in 608 properties in 39 states.

For additional information, please refer to Fitch's Credit Analysis report 'Health Care REIT, Inc.,' dated Oct. 29, 2009, and Fitch's Rating Action Commentary, 'Fitch Affirms Health Care REIT, Inc. at 'BBB'; Outlook Stable,' dated Oct. 5, 2009, available at 'www.fitchratings.com.'

Contact:
Janice Svec +1-212-908-0304 or Steven Marks +1-212-908-9161, New York.

Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com.

Additional information is available at http://www.fitchratings.com/.

Fitch U.S. CMBS Newsletter: Is Stronger Underwriting Here to Stay?

NEW YORK, NY--While the first new Fitch-rated U.S. CMBS transaction in two years contains the strong underwriting emblematic of the early days of the market, time will tell if that remains the case as more deals come to market, according to Fitch Ratings in the latest edition of its weekly U.S. CMBS newsletter.

JPM 2010-C1, the first Fitch-rated multi-borrower CMBS deal since 2008, reflects stronger issuer underwriting practices such as in place cash flow, marked-to-market where applicable, with no reliance on pro-forma income, attributes that resembled the norm in the new issue environment between 1995 and 2004. In addition, borrowers are retaining material equity in the properties with equity contributions generally ranging form 25-50% based on purchase prices.

This represents a stark contrast to the underwriting in 2007, when collateral was often originated based on expectations that cash flow would continue to rise in a commercial real estate market already experiencing dramatic upward trends.

 Fitch's new CMBS presale reports provide the market with evidence of lessons learned since 2007.

The pressing question remains: How long will these positive attributes last? 'If and when underwriting levels do deteriorate, expect to see Fitch raise their credit enhancement levels,' said Group Managing Director and U.S. CMBS group head Huxley Somerville. (lower right photo)

Additional information is available in Fitch's weekly e-newsletter, U.S. CMBS Market Trends'. The link below enables access to Fitch's U.S. CMBS Market Trends weekly updates:

Contact:
Huxley Somerville +1-212-908-0381 or Eric Rothfeld, 1-212-908-0761, New York.
Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278:, sandro.scenga@fitchratings.com.