Fitch: Duke Realty notes BBB-

Fitch Ratings said it assigned a BBB- rating to the $300 million aggregate principal amount of 3.875% senior unsecured notes due Oct. 15, 2022 issued by Duke Realty LP, a subsidiary of Duke Realty Corp.

The notes were issued at 99.584% of principal value to yield 3.925% to maturity.

The proceeds will be used to repay outstanding debt with near-term maturities, including balances on the revolving credit facility, Fitch said, and for general corporate purposes.

Duke Realty Corp. has an issuer default rating of BBB- and preferred stock rating of BB.

Duke Realty LP has an issuer default rating of BBB-, senior unsecured notes rating of BBB- and unsecured revolving credit facility rating of BBB-.

The outlook is stable.

The ratings consider the company's large pool of diversified industrial, office and medical office building properties, solid unencumbered asset coverage of unsecured debt and adequate liquidity position, Fitch said.

The ratings are balanced by a fixed-charge coverage ratio that is low for the category and continued challenging suburban office fundamentals, even as Duke Realty continues to shift its portfolio away from suburban office properties, the agency said.

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