Fitch rates DDR preferreds BB-

Fitch Ratings said it assigned a BB- rating to the $150 million 6¼% class K cumulative redeemable preferred stock issued by DDR Corp.

The proceeds will be used to redeem a portion of its 7 3/8% class H cumulative redeemable preferred stock, consisting of $205 million of outstanding securities, Fitch said.

The company has an issuer default rating of BB+, along with a BB+ rating on its $815 million unsecured revolving credit facilities rating, BB+ rating on its $350 million unsecured term loans, BB+ rating of $1.8 billion senior unsecured notes rating, BB+ rating on its $317.9 million senior unsecured convertible notes and BB- rating on its $405 million preferred stock.

The outlook is positive.

The positive outlook reflects an expectation that DDR's credit profile will improve to a level consistent with a BBB- issuer default rating over the next 12 to 24 months, Fitch said.

The ratings consider the expansion of net operating income from a prime shopping center portfolio, a granular roster of retailer tenants and a fixed-charge coverage ratio that is expected to sustain at levels appropriate for the BBB- rating due to upward leasing spreads and joint venture cash flow growth, the agency said.

The ratings also take into account the company's good access to capital on increasingly favorable terms, Fitch said, and an adequate liquidity position.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.