Moody's downgrades Weingarten Realty

Moody's Investors Service said it lowered Weingarten Realty Investors' senior unsecured debt to Baa1 from A3, cumulative preferred stock to Baa2 from Baa1, senior debt shelf to prospective Baa1 from prospective A3 and the subordinated debt and preferred stock shelves to prospective Baa2 from prospective Baa1.

The outlook is stable, reflecting Moody's expectation that Weingarten will successfully pursue its recently announced long-term growth strategy that includes development and acquisition without material shifts in its current leverage or capital structure.

The agency said the new ratings balance Weingarten's high-quality portfolio of community retail center and industrial assets that produce relatively stable income against the REIT's geographic concentration and the continued weakness of its credit statistics relative to its peer group.

Moody's attributed the weakening credit metrics to Weingarten's greater reliance on debt, especially secured debt, to fund its developments and acquisitions, in an environment where competition for such growth continues to be sharp. Net debt to EBITDA is 5.8x.

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