Fitch Ratings published an update on U.K. care home deals last week after a two-year lull, reporting that both operating conditions and the performance of these securitizations have improved. Over the last two years this industry has undergone a number of changes benefiting care homes for seniors and physically disabled people across the U.K.
Performance in the U.K. care home securitizations has improved since 2003 as the sector emerged from a period of stress, noted Fitch analysts. There have been a number of owner and operator changes in the sector, with many securitizations having increased operator concentrations. After years of consolidation, only a small amount of diversity is left in the sector, but Fitch analysts said that current operators are stronger and more likely to withstand another period of stress in the industry.