Fitch cuts BRE Properties

Fitch Ratings said it downgraded BRE Properties, Inc.'s issuer default rating to BBB- from BBB, unsecured revolving credit facility to BBB- from BBB, senior unsecured notes to BBB- from BBB, convertible senior notes to BBB- from BBB and preferred stock to BB from BB+.

The outlook is stable.

The downgrades reflect expectation that reductions in same property net operating income due to challenging market conditions will result in BRE's leverage, defined as net debt to recurring operating EBITDA, approaching 9 times from its current level of 8.4x as of Dec. 31, according to the agency.

Supporting ratings are BRE's strong liquidity, solid unencumbered asset coverage of unsecured debt and solid fixed charge coverage ratios, the agency said.

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