NEW YORK- Fitch has revised its rating outlook for Meditrust Corp. to stable from negative, following the companys announcement of additional asset sales and corresponding reduction in bank debt. Meditrusts $1.1 billion senior notes are rated BB-, and the companys $175 million preferred stock is rated B.
The revised rating outlook is prompted by Meditrusts continued progress in divesting its $1.2 billion health care properties and first mortgage loans, which will allow it to focus on its $2.7 billion La Quinta hotel chain.
Meditrusts latest asset sales have improved La Quintas prospects to emerge as a stand-alone lodging company with a more manageable debt structure. (Fitch Revises Meditrust Outlook To Stable
