Omega Healthcare Investors Inc. (OHI) has reduced its long-term debt to EBITDA target to below 4.0x for the foreseeable future, compared with 4.0x-5.0x previously. The company continues to demonstrate solid operating performance and a commitment to maintaining a conservative balance sheet. Therefore, S&P Global Ratings revised its outlook on OHI to positive from stable. We also affirmed all our ratings, including our ‘BBB-’ issuer credit rating and ‘BBB-’ issue-level ratings. The positive outlook reflects our expectation that we could raise the rating to ‘BBB’ if OHI’s operating performance remains sound and it adheres to its new financial policy, with S&P Global Ratings-adjusted debt to EBITDA remaining below 4.5x. The outlook revision reflects Omega’s recent announcement of a revised financial policy.
