Fitch ups PS Business Parks

Fitch Ratings said it upgraded PS Business Parks, Inc.'s issuer default rating to BBB+ from BBB and $598.5 million preferred stock to BBB from BBB-.

The agency also said it upgraded the operating partnership, PS Business Parks, LP's issuer default rating to BBB+ from BBB and $100 million unsecured revolving credit facility to BBB+ from BBB.

The outlook is stable.

The company is expected to generate a fixed charge coverage ratio that is commensurate with a BBB+ rating, Fitch said.

The upgrade also takes into account the company's minimal debt levels, which stem from a funding strategy focused on preferred and common stock, the agency said.

Credit concerns include the challenging commercial property market and declining rental rates, which are expected to continue to drive down same-park net operating income in 2011, Fitch said.

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