Fitch rates National Retail notes BBB+

Fitch Ratings said it assigned a BBB+ rating to the senior unsecured notes due 2028 and 2048 issued by National Retail Properties, Inc.

The agency said it expects the net proceeds of the 2028 offering will be used to repay balances on the company's unsecured line of credit, to fund future property acquisitions and for general corporate purposes. The net proceeds of the 2048 offering will be used to redeem the company's outstanding 5.5% notes due 2021.

“The ratings reflect NNN's disciplined investment focus on single-tenant retail real estate and predictable cash flows in excess of fixed charges generated from a granular triple-net leased property portfolio,” Fitch said in a news release.

“Credit strengths also include strong financial flexibility as measured by strong liquidity coverage and unencumbered asset coverage of unsecured debt (UA/UD) and minimal secured debt.

“Concerns include declining acquisition yields, modest same-store revenue growth and exposure to predominantly below investment grade-rated tenants.”

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