Fitch rates Equity Residential notes A-

Fitch Ratings said it assigned an A- rating to the senior unsecured notes due 2026 issued by ERP Operating, LP, operating partnership of Equity Residential.

The proceeds are expected to be used for working capital and general corporate purposes, Fitch said.

Equity Residential has a long-term issuer default rating of A-, unsecured revolving term loan rating of A- and preferred stock rating of BBB.

ERP Operating has a long-term issuer default rating of A-, short-term issuer default rating of F2, unsecured revolving credit facility rating of A-, senior unsecured notes rating of A- and commercial-paper rating of F2.

The ratings reflect the company’s high-quality portfolio focused in core, coastal markets and its market-leading capital access, the agency said.

Equity Residential disposed of non-core, primarily suburban assets and is now contained by about 98% within Boston, Los Angeles, New York, San Diego, San Francisco, Seattle and Washington, D.C. markets, which generally have above-average growth and liquidity through-the-cycle, Fitch said.

For the trailing 12 months that ended June 30, the company’s leverage was 4.9x, the agency added.

Fitch also said it expects the company to maintain a robust development pipeline so that even with its special dividend to be paid in October 2016, leverage will sustain in the 6.5x to 7x range over the long term.

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