Fitch upgrades ProLogis

Following shareholder approval of the merger between ProLogis and AMB Property Corp., Fitch Ratings has upgraded ProLogis' issuer default rating to BBB- from BB+, global line of credit facility to BBB- from BB+, senior notes to BBB- from BB+, convertible senior notes to BBB- from BB+ and preferred stock to BB from BB-.

Fitch also said it removed ProLogis from Rating Watch positive and withdrew the issuer default rating and global line of credit facility rating for ProLogis.

The senior notes and convertible senior notes issued by ProLogis have been exchanged for corresponding notes of ProLogis, LP, formerly known as AMB Property, LP, and the preferred stock issued by ProLogis has been exchanged for corresponding preferred stock of ProLogis, Inc., formerly known as AMB Property Corp.

The withdrawn ratings on ProLogis reflect that this entity will no longer file financial statements with the Securities and Exchange Commission and that any outstanding bonds issued by ProLogis that were not exchanged will be held in an indirect subsidiary of ProLogis, LP, the agency said.

Fitch also said it downgraded ProLogis, Inc., ProLogis, LP and AMB Japan Finance YK and removed them from Rating Watch negative.

The outlook is stable.

The ratings reflect the company's global industrial property enterprise with a broad tenant base and improving fixed-charge coverage, Fitch said.

Credit concerns include ProLogis' increased ownership in ProLogis European Properties, which results in a transient weakening of liquidity prior to its recapitalization into a new fund, the agency said.

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