Fitch rates Realty Income notes BBB+

Fitch Ratings said it assigned a BBB+ rating to the $350 million aggregate principal amount 3.875% coupon senior unsecured notes due 2024 issued by Realty Income Corp.

The notes were priced at 99.956% of par to yield 3.88% to maturity, or 125 basis points, over the benchmark treasury rate.

The proceeds from the offering of $347.6 million are expected to be used to repay a portion of borrowings outstanding under the company’s unsecured credit facility and for other general corporate purposes and working capital, which may include acquisitions, Fitch said.

The agency has an issuer default rating of BBB+, along with a BBB+ rating on its $1.5 billion unsecured revolving credit facility, BBB+ rating on its $3.2 billion of senior unsecured notes and BBB- rating on its $609.4 million of preferred stock.

The outlook is stable.

The ratings are supported by the geographic diversity of the company’s predominantly net leased retail property portfolio, limited tenant concentration and moderate tenant credit risk, Fitch said.

Realty Income’s management team has been and remains cognizant of maintaining consistent credit metrics despite fluctuations attributable to mergers and acquisitions, the agency said.

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