Fitch affirms Public Storage

Fitch Ratings said it affirmed Public Storage's issuer default rating and $300 million unsecured revolving credit facility at A and its $3.5 billion preferred stock at A-. Shurgard Storage Centers, LLC's issuer default rating and $291.7 million senior unsecured notes were affirmed at A.

The outlook is stable.

The agency said the affirmation reflects the company's limited levels of debt, minimal refinance risk, a large and granular unencumbered self-storage property pool that provides value to unsecured bondholders and preferred stockholders, its strong liquidity profile and its substantial market position in the self-storage real estate industry.

The ratings also take into account certain offsetting factors including the potential that portfolio net operating income will remain under pressure as economic conditions remain tenuous, Fitch said, adding that Public Storage's prospects for near-term same-store revenue growth are unclear as the company remains focused on maintaining occupancy.

The company's ratio of net debt plus 25% of preferred stock-to-recurring operating EBITDA was 0.6 times as of Dec. 31.

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