Fitch rates Digital Realty notes BBB

Fitch Ratings said it assigned a rating of BBB to the senior unsecured issuance by Digital Euro Finco, LLC, a wholly owned subsidiary of Digital Realty Trust, Inc.

The notes will be fully and unconditionally guaranteed by Digital Realty Trust and Digital Realty Trust, LP.

The company expects to use to the net proceeds to repay borrowings under its global revolving credit facility.

The rating reflects that while the company’s acquisition of Telx moderately increases leverage in the near-term, Fitch expects the company's metrics to improve in-line with longer-term historical trends, and consistent with a BBB issuer default rating for a diversified data center real estate investment trust.

While the Telx transaction adds more operational intensity and decreases margins, the transaction has several benefits, including increased tenant and revenue diversity and complementary business lines, the agency said.

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