Fitch: Prologis loan BBB-

Fitch Ratings said it withdrew the BBB- rating on the ¥10 billion 3.25% private placement senior unsecured term loan due 2020 with Prologis Japan Finance YK as borrower and assigned a BBB- rating to the same term loan with Prologis Tokyo Finance Investment LP as the new borrower.

Fitch also withdrew the BBB- rating on the ¥36.5 billion senior unsecured revolving credit facility with Prologis Japan Finance as borrower and Prologis, LP is listed as the borrower under this facility.

Prologis, Inc. has an issuer default rating of BBB- and BB rating on its $582 million preferred stock.

Prologis, LP has an issuer default rating of BBB-, BBB- rating on its $1.7 billion global senior credit facility, BBB- rating on its $4.7 billion senior unsecured notes, BBB- rating on its $1.3 billion senior unsecured exchangeable notes, BBB- rating on its €487.5 million senior unsecured term loan, BBB- rating on its ¥36.5 billion senior unsecured revolving credit facility.

The outlook is positive.

The positive outlook takes into account improving fundamentals across the company's broad industrial real estate platform and the ongoing implementation of a strategy to de-lever the company through property dispositions and fund contributions, the agency said.

The company's credit strengths include a global franchise, a granular tenant roster, strong access to capital and a large unencumbered asset base, Fitch said.

Credit concerns include high leverage for the rating as a result of the company's large land holdings and sizable debt maturities through 2015, the agency said.

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