Standard & Poor's Ratings Services said it raised its long-term rating to A-minus from BBB-plus on Baltimore County, Md.'s series 2007A senior living bonds, issued for Oak Crest Village.
The outlook is stable.
"The upgrade reflects additional information about Oak Crest's master facilities plan, consistently strong operating performance over the past several years, stable demand, and solid balance sheet commensurate with the A-minus rating," said Standard & Poor's credit analyst Liz Sweeney.
Oak Crest's financial performance, strong demand characteristics, and balance sheet cushion were already commensurate with the new rating in recent years. However, uncertainty about the size, timing, and financing of Oak Crest's master facilities plan has restrained the rating.
Although the plan doesn't have extensive detail yet, particularly for the third phase, which is likely to start in about four years, the rater believes the plan is affordable at the new rating level. It understands the organization plans to spend about $70 million over the next five to six years as part of its master facility plan, of which about $30 million is likely to be funded by new debt.
Given its strong cash flows and balance sheet strength, Oak Crest's financial profile will remain commensurate with the rating.
Oak Crest Village is a large continuing-care retirement community with approximately 2,100 residents in suburban Parkville in affluent Baltimore County, about 20 miles northeast of downtown Baltimore.
