Fitch: BBB+ to Mid-America Apartments notes

Fitch Ratings said it assigned a BBB+ rating to Mid-America Apartments, LP's (MAA) senior unsecured notes.

The outlook is stable.

Fitch said the rating reflects the sustained improvement in Mid-America’s key credit metrics in recent years, including leverage and unencumbered asset coverage of unsecured debt (UA/UD). The all-stock acquisition of lower-levered Post Properties, Inc. further strengthened Mid-America’s balance sheet to levels that the agency believes will provide sufficient cushion to maintain a stronger credit profile through-the-cycle.

The agency projects Mid-America’s leverage will sustain in the low- to mid-5 times range. This compares favorably to 5.7 times for 2015, 6.4 times for 2014 and the sub 6.5 times level that Fitch views as being consistent with the BBB+ rating. The agency said it expects the company’s fixed-charge coverage will remain in the mid-4 times range through 2017.

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