Fitch affirms First Industrial

Fitch Ratings said it affirmed First Industrial Realty Trust, Inc.'s issuer default rating at BBB and $325 million preferred securities at BBB- and First Industrial, LP's issuer default rating, $1.4 billion senior unsecured notes, $200 million senior unsecured exchangeable notes and $500 million unsecured bank credit facility at BBB.

The ratings were removed from Rating Watch negative, where they were originally placed on May 10, 2006, and the outlook is now stable.

The agency said the ratings are supported by First Industrial's geographically diverse portfolio, which includes a large pool of unencumbered industrial properties; its flexible funding profile, as most of the REIT's debt is fixed rate, unsecured and matures evenly over the next several years; its risk-adjusted capitalization, which is steady and adequate for the current rating level; and Fitch's view that, from a macroeconomic standpoint, demand for industrial real estate is expected to be favorable in 2007.

Fitch said it remains concerned about the REIT's debt service coverage ratios. Based on its review of company-reported earnings, the agency calculated that First Industrial's recurring EBITDA fixed-charge coverage ratio is 1.2x for the 12 months ended March 31, which Fitch described as low for the rating category.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.