S&P rates National Retail notes BBB-

Standard & Poor's said it assigned a BBB- rating to the $250 million 6 7/8% senior unsecured notes due 2017 issued by National Retail Properties Inc. (BBB-/stable).

Proceeds will be used to pay down outstanding borrowing on its $300 million unsecured line of credit and to fund property acquisitions for 2007. As of June 30, 2007, $173 million was outstanding on the credit facility.

The ratings reflect a conservative financial profile that offsets the risks created by tenant and industry concentrations in a cyclical retail sector, according to S&P. The rating also considers a well-occupied and geographically diverse triple-net-leased real estate portfolio that has historically produced a stable stream of cash flow, the agency said.

The stable outlook reflects S&P's belief that a growing portfolio of relatively stable assets should result in predictable cash flow that comfortably covers the company's debt obligations over the near term.

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