S&P puts Vereit on positive watch

S&P said it placed Vereit Inc.’s ratings, including the BBB issuer rating, on CreditWatch with positive implications.

The placement follows the announcement Vereit agreed to be acquired by Realty Income Corp. Concurrent with the transaction, the company will spin-off its office assets into a new self-managed and publicly traded REIT.

“The CreditWatch positive placement reflects our view that Phoenix-based Vereit will benefit from the increase in its scale following its acquisition by Realty Income, which will provide it with enhanced cost and leasing efficiencies,” the agency said in a press release.

S&P said it aims to resolve the CreditWatch when Realty Income closes the acquisition and anticipates discontinuing Vereit’s ratings.

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