Fitch rates Realty Income notes BBB+

Fitch Ratings said it assigned a BBB+ rating to the $350 million aggregate principal amount 2.00% coupon senior unsecured notes due 2018 and $450 million aggregate principal amount 3.25% coupon senior unsecured notes due 2022 issued by Realty Income Corp.

The 2018 notes were priced at 99.910% of par to yield 2.017% to maturity, or 140 basis points over the benchmark treasury rate.

The 2022 notes were priced at 99.382% of par to yield 3.323% to maturity, or 170 basis points over the benchmark treasury rate.

The proceeds will be used to repay borrowings outstanding on the company's unsecured credit facility and any remaining proceeds will be used for general corporate purposes, which may include additional property acquisitions.

The company has an issuer default rating of BBB+, along with a BBB+ rating on its $1 billion unsecured revolving credit facility, BBB+ rating on its $2.6 billion senior unsecured notes and BBB- rating on its $609.4 million preferred stock.

The outlook is stable.

The company's portfolio remains geographically diversified and will have lower tenant concentration and tenant credit risk, Fitch said.

Offsetting factors include a slightly higher leverage ratio, the agency said, as well as a weaker, though still strong near-term liquidity position.

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