Fitch downgrades Necessity Retail

Fitch Ratings said it downgraded the Necessity Retail REIT, Inc. (RTL) and the Necessity Retail REIT Operating Partnership, LP's long-term issuer default ratings to BB from BB+. The outlook has been revised to stable from negative.

“The downgrades reflect Fitch's expectation that leverage will remain elevated following the $1.3 billion CIM portfolio acquisition. Material deleveraging will be difficult via equity issuance given the large and persistent discount at which RTL shares trade relative to consensus net asset value (NAV) estimates and via asset sales as the transaction market adjusts pricing expectations to reflect higher interest rates, given debt availability for buyers is less plentiful amid a weakening economic backdrop,” the agency said in a press release.

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