Fitch Rates HCP's $2.4B Senior Unsecured Notes 'BBB'; On Rating Watch Positive

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has assigned 'BBB' ratings to the new $400 million par value 2.7% senior notes due 2014 with a yield of 2.734%, $500 million par value 3.75% senior notes due 2016 with a yield of 3.838%, $1.2 billion par value 5.375% senior notes due 2021 with a yield of 5.443%, and $300 million par value 6.75% senior notes due 2041 with a yield of 6.833% issued by HCP, Inc. (NYSE: HCP). The Issuer Default Rating for HCP, Inc. is 'BBB' and all ratings are currently on Rating Watch Positive.

Net proceeds from the offering will be $2.37 billion and will be used to fund a portion of the cash consideration for the previously announced HCR Manor Care acquisition. The offering is expected to close on Monday, Jan. 24, 2011, subject to customary closing conditions.

For additional information on HCP, Inc., please see Fitch's full rating report published on Jan. 14, 2011 available at 'www.fitchratings.com'.

HCP, Inc. is an equity REIT based in Long Beach, CA. The company acquires, develops, leases, and manages health care real estate and provides mortgage and other financing to health care operators. As of Sept. 30, 2010, HCP's portfolio of investments included 670 properties in 42 states and Mexico as well as $2 billion of senior and mezzanine investments. Of these assets, 571 are wholly owned, including 225 senior housing facilities, 186 medical office buildings, 98 life science assets, 17 hospitals, and 45 skilled nursing facilities.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology', Aug. 16, 2010;

--'Criteria for Rating U.S. Equity REITs and REOCs', April 16, 2010;

--'Recovery Rating and Notching Criteria for REITs', Dec. 23, 2009.

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646

Criteria for Rating U.S. Equity REITs and REOCs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=510465

Recovery Rating and Notching Criteria for REITs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=492828

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CONTACT:

Contact:
Primary Analyst
Janice Svec
Senior Director
+1-212-908-0304
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Steven Marks
Managing Director
+1-212-908-9161
or
Committee Chairperson
Nathan Flanders
Managing Director
+1-212-908-0827
or
Media Relations, New York
Sandro Scenga
+1-212-908-0278
[email protected]

KEYWORDS:   United States  Mexico  North America  Central America  California  New York

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