Moody's affirms Duke Realty

Moody's Investors Service said it affirmed the Baa2 senior unsecured and Baa3 preferred equity ratings of Duke Realty Corp. and its subsidiary, Duke Realty LP.

The outlook remains negative, reflecting continued concerns with respect to poor economic conditions and their impact on Duke Realty's operating fundamentals, combined with a fixed-charge coverage ratio that is inadequate for the company's current rating, the agency said.

These concerns are partly mitigated by manageable and declining leverage metrics, as well as adequate levels of liquidity, according to Moody's.

"Moody's is encouraged by Duke Realty's moves to improve its balance sheet and enhance its financial flexibility, including asset sales and equity offerings," said Chris Wimmer, vice president at Moody's.

"The lack of clarity surrounding the timing and magnitude of a recovery in fundamentals, as well as weak coverage metrics, prevent us from revising the outlook at this time."

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