S&P affirms Post Properties

Standard & Poor's said it affirmed Post Properties Inc. and operating partnership Post Apartment Homes LP's BBB corporate credit rating.

Ratings were removed from CreditWatch with negative implications, where they were placed on June 26, after Post said it concluded efforts to sell the REIT after receiving no definitive bids and would now pursue other strategies to enhance shareholder value.

The outlook is negative

The affirmations reflect Post's announced strategy to shrink its wholly owned predevelopment pipeline and to use proceeds from expected asset sales to fund committed development and reduce debt, as well as to fund share repurchases and any required special dividends, according to the agency.

Ratings reflect a high-quality portfolio, prudent balance sheet management and good liquidity, S&P said.

Offsetting these factors are Post's consistently weak operating results, coverage measures that are only adequate and high but improving geographic concentration, S&P said.

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