Moody's ups Developers Diversified to stable

Moody's Investors Service said it affirmed the Baa3 senior rating of Developers Diversified Realty Corp. and revised the outlook to stable from negative.

Developers Diversified has Ba1 preferred stock, the agency added.

The stable outlook reflects Moody's expectation that Developers Diversified will benefit from the improving economy and from the improvements it has made in its portfolio and its balance sheet, the agency said.

However, it expects high leverage and low fixed charge coverage to temper the REIT's credit profile for at least the next 12 to 24 months, the agency added.

The ratings consider that the company continues to make impressive progress in simplifying its model and improving its financial flexibility, the agency said.

The debt-to-EBITDA ratio is 9.5 times.

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