S&P trims Federal Realty

S&P said it trimmed the issuer and issue ratings for Federal Realty Investment Trust to BBB+ from A- and the preferred shares to BBB- from BBB. The agency also assigned a BBB+ issuer rating to Federal Realty OP LP, which it views as a core subsidiary.

“We expect Federal Realty's leverage metrics to improve over the next 12 to 24 months but remain above our tolerance for the prior rating, with S&P Global Ratings-adjusted debt to EBITDA around 6x,” S&P said in a press release.

The agency noted that as of Dec. 31, Federal Realty's S&P Global Ratings-adjusted debt to EBITDA was 7.1x, down from 7.4x at year-end 2020, but still well above the mid-5x area where the company has operated historically.

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