Fitch rates Liberty Property notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Liberty Property Trust LP's $450 million senior unsecured notes.

The notes mature in February 2024. Liberty plans to use the proceeds to fund a portion of the cash consideration payable in the company's previously announced purchase of Cabot Industrial Fund III Operating Partnership, LP, Fitch said.

Liberty Property Trust has an issuer default rating of BBB+; Liberty Property LP has an issuer default rating of BBB+, unsecured revolving credit facility rating of BBB+, medium-term notes rating of BBB+, senior unsecured notes rating of BBB+ and preferred operating units rating of BBB-.

The outlook is negative.

The ratings reflect Liberty's moderate leverage, consistent coverage of fixed charges and solid unencumbered asset coverage, Fitch said.

The negative outlook mainly considers the company's persistently weak dividend coverage from adjusted funds from operations and elevated leverage for the rating, the agency said.

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