S&P: Archstone-Smith Trust unchanged

Standard & Poor's said its ratings on Archstone-Smith Trust (BBB+/positive) and Archstone-Smith Operating Trust (BBB+/positive) are not affected by the recent sale of $500 million of 4% exchangeable senior unsecured notes due 2036, or by the pending acquisition of Deutsche WohnAnlage GmbH.

The agency added that proceeds from the debt offering will be used primarily to repay existing debt and pre-fund development expenditures, noting that the transaction is expected to be accretive due to the low cost of debt issued relative to the cost of debt to be repaid and yield expectations on investments.

Upon completion of the acquisition, Archstone will have $744 million invested in Germany spread across 42 communities totaling roughly 7,600 units, S&P said.

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