Fitch ups Developers Diversified preferreds to BBB-

Fitch Ratings said it affirmed Developers Diversified Realty Corp.'s issuer default rating, unsecured credit facilities, unsecured medium-term notes and unsecured convertible notes at BBB.

Fitch upgraded the issuer's cumulative redeemable preferred shares to BBB- from BB+.

The outlook is stable.

Fitch said the affirmations reflect the company's solid liquidity and the extent to which it covers fixed charges with earnings generated from a diverse portfolio of shopping centers and other retail properties. The company also has an established track record as a real estate developer with a national platform.

Some offsetting factors include the company's stock buybacks and its development activities that contain certain inherent risks, the agency said.

The upgrade of preferred stock reflects material improvement in the company's ratio of debt plus preferred stock divided by undepreciated book capital in 2007, according to Fitch.

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