Fitch: Public Storage outlook positive

Fitch Ratings said it revised the outlook for Public Storage, Inc. to positive from stable and affirmed its issuer default rating and $300 million unsecured credit facility at A- and its $3.5 billion preferred securities at BBB+. The agency also affirmed Shurgard Storage Centers, Inc.'s issuer default rating and $410.9 million senior unsecured notes at A-.

The agency said the outlook change was driven by an improvement in Public Storage's operating performance over the past year and by the following credit implications of the March 31 acquisition by the New York Common Retirement Fund of 51% of the limited liability company interests in Shurgard European Holdings LLC: limited operational disruption, a more manageable consolidated debt maturity schedule, lower leverage, fewer encumbered assets, less exposure to the European markets and fewer restrictions on cash flows.

Limiting factors to the ratings include the company's preference for utilizing relatively more expensive capital and the fact that occupancy in the company's expansion facilities and other non-same-store domestic facilities was 83.2% in 2007, below that of the other areas of the portfolio, Fitch added.

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