Fitch affirms Equity Residential

Fitch Ratings said it affirmed Equity Residential's A issuer default rating and A- preferred stock ratings and ERP Operating LP's issuer default and senior unsecured debt ratings at A.

The outlook is stable.

The agency said Equity Residential's ratings reflect its strong franchise, solid cash flows, seasoned management and robust corporate governance platform. Franchise strength is evidenced by its broad geographic diversification, solid access to multiple forms of capital, consistent operating and capitalization strategy and a relatively high level of unencumbered assets.

Equity Residential's operating strategy continues to be focused on recycling capital into high barrier to entry markets, which markets tend to exhibit relatively strong demand, a dearth of buildable land and high construction costs. Although acquisitions within these markets are relatively expensive and cap rates thin, Fitch noted that the solid fundamentals within these markets should push growth in rental rates above the national average.

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