Fitch Ratings revised its outlook to negative and affirmed its BBB-minus rating on Friendship Village of Columbus, Ohio Inc., a continuing care retirement community facility.

The move affects $16 million of revenue refunding and improvement bonds issued in 1998 by Franklin County. The bonds are secured by a pledge of t gross revenues, a first mortgage, and a debt service reserve fund, according to Fitch.

The negative outlook reflects Friendship Village’s low occupancy rates and the stressed CCRC market in Columbus, analysts said. Fitch warned that if a new capital project were financed primarily with new debt, as planned, it would “undoubtedly” lead to a downgrade. 

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