Fitch rates Public Storage preferreds A-

Fitch Ratings said it assigned a credit rating of A- to the $450 million 5.20% series W preferred stock issued by Public Storage, Inc.

The proceeds from the offering of about $436.5 million before the exercise of the over-allotment option are expected to be used to repay all of the outstanding indebtedness under its revolving credit facility, to make investments in self-storage facilities and entities that own self storage facilities and for other general corporate purposes.

Public Storage has an issuer default rating of A, $300 million unsecured revolving line of credit rating of A and $3.3 billion preferred stock rating of A-.

Subsidiary Shurgard Storage Centers, LLC has an issuer default rating of A and an A rating on its $186.5 million senior unsecured notes.

The outlook is stable.

The ratings reflect the company's minimal debt, which results in low leverage and limited refinance risk, Fitch said.

The ratings also consider the solid performance of the company's self-storage property portfolio, the agency said.

Credit strengths also include strong liquidity and access to capital, Fitch said, and a long management track record.

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, the agency added.

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