Fitch affirms Realty Income

Fitch Ratings said it affirmed Realty Income Corp.'s issuer default rating, $355 million senior unsecured revolving credit facility and $1.35 billion senior unsecured notes at BBB+ and $337.8 million preferred stock at BBB.

The outlook is stable.

The affirmation reflects the predictable cash flows generated by the company's diversified, single-tenant, triple-net leased portfolio of freestanding retail properties in excess of fixed charges, despite the current environment, according to the agency.

Ratings also reflect that Realty Income's portfolio remains entirely unencumbered from mortgage debt, which continues to benefit unsecured bondholders, the agency said.

The action considers offsetting factors including a challenging retail environment that remains susceptible to restrained consumer spending and difficult broader economic conditions, Fitch said.

The company's gross debt-to-recurring EBITDA ratio was 4.5x for the 12 months ended June 30.

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