Fitch rates Digital Stout notes BBB

Fitch Ratings said it assigned an issuer default rating of BBB to Digital Stout Holding, LLC, a wholly-owned subsidiary of Digital Realty Trust, LP, which is the operating partnership of Digital Realty Trust, Inc.

Fitch also said it assigned a credit rating of BBB to Digital Stout Holding's private placement of £400 million aggregate principal amount of 4.25% guaranteed notes due 2025.

The guaranteed notes will be senior unsecured obligations of Digital Stout Holding and will be fully and unconditionally guaranteed by Digital Realty Trust and Digital Realty Trust, LP.

The proceeds will be used from this offering to temporarily repay borrowings under the global revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities and for general working purposes.

Digital Realty Trust, Inc. has an issuer default rating of BBB, along with a BB+ rating on its $453.4 million redeemable preferred stock and BB+ rating on its $123.3 million convertible preferred stock.

Digital Realty Trust, LP has an issuer default rating of BBB, along with a BBB rating on its $1.8 billion unsecured revolving credit facility, BBB rating on its $750 million senior unsecured term loan, BBB rating on its $1.7 billion senior unsecured notes and BBB rating on its $266.4 million senior unsecured exchangeable notes.

The outlook is stable.

The ratings reflect that broader institutional-lender acceptance of datacenters as a niche property type has remained gradual, Fitch said.

The company is committed to an unsecured funding profile and is less reliant on the secured debt markets to fund its business, predicated on the company's ability to access the unsecured bond, preferred stock and common stock markets on attractive terms, the agency said.

Digital Realty's credit strengths include a granular tenant roster that insulates the company against obsolescence risk, a geographically diverse portfolio in strategically important markets and a fixed-charge coverage ratio is expected to remain strong for the BBB rating, Fitch added.

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