Fitch ups Developers Diversified to positive

Fitch Ratings said it affirmed Developers Diversified Realty Corp.'s issuer default rating at BB, $1 billion unsecured revolving credit facilities at BB, $1.7 billion of medium term notes at BB, $583.4 million of convertible notes at BB and $375 million of preferred stock at B+.

The outlook was revised to positive from stable.

The revision of the outlook reflects the expectation of improvement in the company's credit profile in the near term, the agency said. Fitch anticipates a continued strengthening of fundamentals across the company's retail property portfolio in 2011 along with stronger fixed charge coverage ratios.

The positive outlook also reflects management's plan to strengthen the company's credit profile by de-levering via higher retained cash flow, EBITDA growth and an increase in the percentage of net operating income derived from the prime portfolio, the agency added.

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