Fitch Ratings currently maintains ratings on three continuing care retirement communities (CCRCs)- Charlestown Retirement Community (rated 'A' with a Stable Outlook by Fitch), Oakcrest Village (rated 'A-' with a Stable Outlook), both in Maryland, and Greenspring Village (rated 'BBB+' with a Stable Outlook) in Virginia - that are managed by Erickson Retirement Communities (ERC).
Fitch believes that the bankruptcy filing of ERC will have no effect on the ratings of these facilities, as all are separate, independent 501(c)(3) organizations, unaffiliated with Erickson. The only financial ties that these organizations have with Erikson are fees they pay as part of cancellable management agreements that they have in place with ERC.
In discussions with the management of the Fitch-rated communities, Fitch confirmed that the contracts remain in effect and there has been no effect on operations.
The most significant risk of the bankruptcy, with respect to Fitch's ratings, could be an adverse effect on the marketing of residential units. Each of the facilities is aware of this and has plans in place to address this risk.
Fitch will continue to monitor the situation and, if appropriate, will update investors as more information becomes available.
Additional information is available at 'www.fitchratings.com'.
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Contacts:
Fitch Ratings
Jim Mitchell, 813-222-1395, Tampa
Gary Sokolow,
212-908-9186, New York
or
Media Relations:
Cindy Stoller,
212-908-0526, New York
Email: cindy.stoller@fitchratings.com