S&P: Vornado preferreds BBB-

Standard & Poor's said it assigned a BBB- rating to the $175 million of 6.875% series J cumulative redeemable preferred shares issued by Vornado Realty Trust.

The proceeds from the offering will be used to redeem outstanding preferred securities and for general corporate purposes.

The ratings on Vornado reflect satisfactory business risk profile, as evidenced by relatively robust core cash flow growth during the recent economic downturn, the agency said.

This internal growth offset dilution from low-yielding noncore investments and helped bolster previously weak fixed-charge coverage measures that contributed to the assessment that the REIT maintains an intermediate financial risk profile.

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