Moody's: Piedmont Operating notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to the proposed $250 million senior unsecured notes being marketed by Piedmont Operating Partnership, LP, a wholly owned subsidiary of Piedmont Office Realty Trust, Inc.

The notes will be guaranteed by the REIT.

Net proceeds from this offering will be used to repay outstanding borrowings under Piedmont's unsecured line of credit, the majority of which is attributed to recent property acquisitions, and for general corporate purposes.

Moody's also affirmed Piedmont Operating's existing Baa2 issuer rating.

The outlook is stable.

Moody's said the Baa2 rating reflects the REIT's high-quality assets, conservative capital strategy, and high fixed charge coverage. These credit strengths are offset by geographic concentrations.

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