...Fitch Ratings revised its rating outlook for the senior living sector to negative from stable, reflecting a weakened credit environment, including limited access to capital, slower unit re-occupancy caused by falling real estate values, and significantly reduced liquidity due to realized and unrealized losses on investments. Although many Fitch- rated continuing care retirement communities (CCRC) continue to show operating stability, the impacts from the global recession have challenged and will continue to challenge the sector's financial performance. While bond ratings allow a certain amount of performance variability, the combined effect of these pressures is likely to adversely affect bond ratings over the medium term. Fitch expects rating downgrades to exceed rating upgrades over the next 18¡24 months in this sector. Specific market characteristics, such as the anticipated demand from retiring baby boomers, are positive factors for the industry and suggest a relative quick return to...
