3/10/2010-Wednesday, Fitch Ratings downgraded real-estate investment trust BRE Properties (NYSE:BRE) to BBB-, the last rung before junk territory, predicting the company's leverage level will keep rising as the weak market continues to reduce the firm's same-property income.
The agency expects 2010 net operating income to decline at about the same pace as last year's 6.5% drop.
Fitch also commented that the company has a concentration of debt maturities in 2012 unless it meaningfully reduces its outstanding debt.
However, BRE does have "strong liquidity, solid unencumbered asset coverage of unsecured debt and solid fixed charge coverage ratios," said Fitch, which is why the company's outlook is set at stable, meaning a further downgrade is unlikely.
Keywords: properties Fitch Downgrade bbb- Stock smartrend
Ticker(s): BRE
