S&P lifts Brandywine Realty from junk

Fitch Ratings said it upgraded the issuer default ratings on Brandywine Realty Trust and its operating partnership, Brandywine Operating Partnership, LP, to BBB- from BB+.

The agency also said it upgraded Brandywine Realty’s preferred stock rating to BB from BB- with recovery rating of RR6.

Fitch also said it upgraded Brandywine Operating’s senior unsecured line of credit to BBB- from BB+ with recovery rating of RR4, senior unsecured term loans to BBB- from BB+ with recovery rating of RR4 and senior unsecured notes to BBB- from BB+ with recovery rating of RR4.

The outlook is stable.

The upgrades reflect an expectation that the company will reduce leverage to the mid-6x range in 2016 and sustain this level for the foreseeable future, Fitch said.

The agency said it expects proceeds from announced fourth-quarter 2015 dispositions, combined with additional sales in early 2016, to be used primarily to reduce debt and fund development.

The company has capitalized on a robust sales market in the past 12 months, publicly announcing the sale of more than $700 million in assets during 2015, Fitch added.

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