S&P rates PS Business Parks preferreds BBB-

Standard & Poor's said it assigned a BBB- rating to the new $200 million 6.45% cumulative preferred stock series S issued by PS Business Parks Inc., the general partner of PB Business LP.

The outlook is stable.

PS Business recently closed on the acquisition of a portfolio of office and industrial assets located in the Bay area of California for $520 million.

S&P said it believes this portfolio fits well with the company's current strategy of acquiring some vacancy in existing markets.

The company's still modest financial profile and fixed-charge coverage metrics support its long-term hold investment strategy, the agency said.

This strategy includes little development risk, S&P said, but some current lease-up risk associated with the acquired vacancies.

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