Fitch gives A- rating to Public Storage preferreds

Fitch Ratings said it assigned an A- credit rating to the $250 million 5.625% series U preferred stock issued by Public Storage. The company has an A issuer default rating, and the agency rates its $300 million revolving line of credit at A and its $3.3 billion of existing preferreds at A-. The outlook is stable.

Proceeds are expected to be used to redeem the company's $172.5 million 7% series N preferred stock and for other general corporate purposes.

Fitch said the A issuer default rating centers on the company's minimal debt, which results in low leverage and limited refinance risk, coupled with the solid performance of the company's self-storage property portfolio. Credit strengths also include strong liquidity and access to capital and a long management track record.

In the agency's view, the rating is balanced by the company's focus on a specialty property type and moderate exposure to geographical regions such as California and Texas.

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