Fitch upgrades DDR from junk

Fitch Ratings said it upgraded DDR Corp.'s issuer default rating to BBB- from BB+, $815 million unsecured revolving credit facilities to BBB- from BB+, $350 million unsecured term loans to BBB- from BB+, $2.1 billion senior unsecured notes to BBB- from BB+, $320.5 million senior unsecured convertible notes to BBB- from BB+ and $405 million preferred stock to BB from BB-.

The outlook was revised to stable from positive.

The upgrade reflects that pro forma for the $1.46 billion acquisition of a portfolio of power centers from DDR's joint venture with Blackstone Real Estate Partners VII, DDR's recurring cash flow will remain in excess of fixed-charges at a level consistent with an investment-grade rating, Fitch said.

The upgrade also takes into account a management team continually focused on improving credit metrics, as well as good liquidity and strong access to capital, the agency said.

Properties within the Blackstone joint venture portfolio are located in markets with stronger demographics like higher household income and greater population density than properties within the existing DDR portfolio, Fitch said.

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