Fitch rates Duke Realty notes BBB

Fitch Ratings said it assigned a BBB rating to the new $250 million 6.75% senior unsecured notes due March 15, 2020 issued by Duke Realty LP, the operating partnership of Duke Realty Corp.

The outlook is negative.

Proceeds from the notes will be used to reduce outstanding debt and for general corporate purposes.

The agency said Duke Realty's BBB issuer default rating reflects the company's moderate leverage, large and diversified pool of industrial and office properties, diversified tenant mix with a well laddered lease expiration schedule, strong unencumbered asset coverage, manageable debt maturity profile, solid liquidity position and limited development risk.

Balancing these strengths are continued weaknesses in the company's operating markets and fixed charge coverage that is somewhat low for the ratings, Fitch said.

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