Fitch upgrades Prologis

Fitch Ratings said it upgraded the ratings of Prologis, Inc., its operating partnership Prologis, LP and its subsidiary Prologis Tokyo Finance Investment LP.

The agency upgraded Prologis, Inc.'s issuer default rating to BBB from BBB- and $582 million preferred stock to BB+ from BB.

Prologis, LP's issuer default rating was upgraded to BBB from BBB-, $1.7 billion global senior credit facility to BBB from BBB-, $5 billion senior unsecured notes to BBB from BBB-, $944 million senior unsecured convertible notes to BBB from BBB- and €487.5 million senior unsecured term loan to BBB from BBB-.

Prologis Tokyo Finance Investment's ¥36.5 billion senior unsecured revolving credit facility was upgraded to BBB from BBB- and ¥10 billion senior unsecured term loan to BBB from BBB-.

The outlook also was revised to stable from positive.

The upgrades reflect the company's material reduction in leverage, principally via the announced European joint venture with Norges Bank Investment Management and the successful recent initial public offering of Nippon Prologis REIT, Inc., Fitch said.

Credit strengths include the company's global industrial real estate platform, including the private capital franchise, a granular tenant roster and strong access to capital, the agency said.

Credit concerns include fixed-charge coverage that is low for the rating and significant 2014 debt maturities, which weaken liquidity, Fitch said.

© 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.