S&P: Public Storage outlook up to positive

Standard & Poor's said it revised its outlook on Public Storage to positive from stable.

At the same time, the agency said it affirmed all of our ratings on the company, including the A- corporate credit rating.

S&P added that the outlook revision and ratings acknowledge Public Storage's industry-leading market position, which benefits from scale of operations following the successful integration of Shurgard Storage Centers Inc., conservative financial policies, including the company's use of perpetual preferred stock as a primary source of financing and full operating cash flow coverage of all obligations and solid credit metrics, even with use of higher-cost preferred stock.

These strengths are tempered by risks associated with operating in a potentially prolonged weak macroeconomic environment, which could affect some of Public Storage's U.S. markets, as well as the relatively new European storage market, the agency noted.

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