(The following statement was released by the rating agency)
Jan 19 - Fitch Ratings has published its fourth-quarter 2010 REIT Report Quarterly. During this past quarter, Fitch assigned first-time ratings for two new issuers and 12 security-specific ratings, affirmed 12 Issuer Default Ratings (IDRs), placed two issuers on Rating Watch, removed two issuers from Rating Watch, upgraded two IDRs and downgraded one IDR among its rated equity real estate investment trusts (REITs).
Fitch released its 2011 Outlook for U.S. Equity REITs on Dec. 15, 2010, in which it stated that strong capital markets access and continued issuer de-risking pave the way for a Stable Outlook for U.S. equity REITs next year. Also bolstering the sector's prospects are relatively unchanged coverage metrics and a strengthening asset sales environment.
Many REITs have strengthened their liquidity positions in recent months, with many issuers accessing the capital markets to repay or refinance near-term maturing debt. Many companies now have the flexibility to pursue acquisitions without affecting rating levels. However, Fitch would view acquisitions more negatively if they were not financed on a leverage-neutral basis.
Offsetting these positive elements are expectations of continued negative property-level fundamentals across most asset classes. Also potentially weighing on the sector is a fragile improvement in the economy and continued elevated leverage across the sector. Although the capital markets remain available to Fitch-rated REITs, unemployment remains persistently high, stifling consumer sentiment and tenant demand for commercial real estate.
Other items in this edition of Fitch's 'REIT Report Quarterly' include:
--An overview of recent rating actions; --Summaries of recently released REIT reports, criteria, and market commentaries; --Links to recent Fitch research.
'REIT Report Quarterly' is available by clicking on the link or by going to www.fitchratings.com' under the following headers:
Sectors >> Financial Institutions >> REITs >> Newsletters
Contact:
Steven Marks Managing Director +1-212-908-9161 Fitch Inc., 1 State Street Plaza, New York, NY 10004
Jean-Pierre Husband Director +44 (0)20 7417 6304
Ben McCarthy Managing Director +61 2 8256 0388
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: REIT Report Quarterly
(New York Ratings Team) (e-mail: pam.niimi@reuters.com; Reuters Messaging: pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Jan 19 - Fitch Ratings has published its fourth-quarter 2010 REIT Report Quarterly. During this past quarter, Fitch assigned first-time ratings for two new issuers and 12 security-specific ratings, affirmed 12 Issuer Default Ratings (IDRs), placed two issuers on Rating Watch, removed two issuers from Rating Watch, upgraded two IDRs and downgraded one IDR among its rated equity real estate investment trusts (REITs).
Fitch released its 2011 Outlook for U.S. Equity REITs on Dec. 15, 2010, in which it stated that strong capital markets access and continued issuer de-risking pave the way for a Stable Outlook for U.S. equity REITs next year. Also bolstering the sector's prospects are relatively unchanged coverage metrics and a strengthening asset sales environment.
Many REITs have strengthened their liquidity positions in recent months, with many issuers accessing the capital markets to repay or refinance near-term maturing debt. Many companies now have the flexibility to pursue acquisitions without affecting rating levels. However, Fitch would view acquisitions more negatively if they were not financed on a leverage-neutral basis.
Offsetting these positive elements are expectations of continued negative property-level fundamentals across most asset classes. Also potentially weighing on the sector is a fragile improvement in the economy and continued elevated leverage across the sector. Although the capital markets remain available to Fitch-rated REITs, unemployment remains persistently high, stifling consumer sentiment and tenant demand for commercial real estate.
Other items in this edition of Fitch's 'REIT Report Quarterly' include:
--An overview of recent rating actions; --Summaries of recently released REIT reports, criteria, and market commentaries; --Links to recent Fitch research.
'REIT Report Quarterly' is available by clicking on the link or by going to www.fitchratings.com' under the following headers:
Sectors >> Financial Institutions >> REITs >> Newsletters
Contact:
Steven Marks Managing Director +1-212-908-9161 Fitch Inc., 1 State Street Plaza, New York, NY 10004
Jean-Pierre Husband Director +44 (0)20 7417 6304
Ben McCarthy Managing Director +61 2 8256 0388
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: REIT Report Quarterly
(New York Ratings Team) (e-mail: pam.niimi@reuters.com; Reuters Messaging: pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.