Fitch upgrades Prologis

Fitch Ratings said it upgraded the issuer default ratings of Prologis, Inc. to BBB+ from BBB, along with the issuer default ratings on its operating partners, Prologis, LP and Prologis Tokyo Finance Investment, LP to BBB+ from BBB.

The outlook is stable.

The upgrades reflects an expectation that the company's pro rata leverage will sustain at about 6x over the next 12- to 24-months, which is a level consistent with the BBB+ rating, Fitch said.

The company also has sufficient cushion to engage in larger debt-funded acquisitions or transactions relative to the 6.5x negative rating sensitivity, the agency said.

Fitch also said it expects the company to reduce via continued positive same-store net operating income growth and cash flows from development.

The company continues to benefit from strong occupancies and positive leasing spreads, which are driven primarily by e-commerce demand, the agency explained.

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