Moody's rates Retail Opportunity notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Retail Opportunity Investments Partnership, LP's planned $350 million of senior unsecured notes due 2028.

All other ratings, including Retail Opportunity Investments Corp.'s Baa2 issuer rating and the Baa2 senior unsecured debt ratings for its affiliated operating subsidiary, Retail Opportunity Investments (collectively ROIC) remain unchanged, Moody’s said. The outlook for both entities is stable.

The proceeds will be used to repay ROIC's outstanding $250 million 5% notes due Dec. 15, and $100 million of term loan debt.

“The debt-neutral transaction is a credit positive in that it will extend ROIC's debt maturity profile. We do recognize that the increase in interest expense due to the higher coupon will negatively impact annual cash flow and fixed charge coverage although the impact is expected to be manageable,” the agency said in a press release.

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