Moody's affirms Vornado

Moody's Investors Service said it affirmed the senior debt rating of Vornado Realty Trust at Baa2.

The outlook is stable.

Vornado's Baa2 rating reflects the REIT's prudent management of liquidity and funding, with high line of credit availability each quarter for several years and the REIT's conservative decision to pay out its common dividend 40% in cash and 60% in shares, which will preserve $390 million in cash over 12 months, the agency said.

These strengths are offset by the REIT's high effective leverage, which includes preferred stock and preferred operating partnership units, Moody's said.

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