Fitch revises Prologis to positive

Fitch Ratings said it affirmed Prologis, Inc.'s issuer default rating at BBB+ and revised the outlook to positive from stable.

Fitch said the outlook revision reflects its expectation that Prologis’s pro rata leverage will sustain below 5.5 times over the next 12 to 24 months, a level consistent with the A- rating category.

However, the company would have minimal cushion to engage in larger debt-funded acquisitions or transactions relative to the agency’s 5.5 times threshold rating sensitivity. Pro rata leverage for the year-ended 2017 was 5.7 times, compared with 6 times at Dec. 31, 2016.

Fitch said it expects Prologis’ improving leverage to be supported by positive same store net operating income (SSNOI) growth and cash flows from development.

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