The recent economic problems of nursing home company NHP have been well documented. Now, Fitch has downgraded a tranche on one of its three securitizations in the Care Homes series. The latest development follows on from the calls from NHP shareholders for Richard Ellert, founder and chief executive of the company and the key figure in its ventures into the asset-backed market, to resign his post.

Reports suggest that one major cause of concern among shareholders has been Ellert's decision to borrow GBP569 million ($860 million) from bond issues, which they feel could leave the company overstretched in the future, bearing in mind the difficulties facing NHP at this time. The company has seen a collapse in its share value and a rise in operating costs at the same time as occupancy in its homes is falling.

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