Moody's: Duke Realty view negative

Moody's Investors Service said it affirmed Duke Realty Corp. and Duke Realty LP's senior debt ratings of Baa1, and revised the outlook to negative from stable.

The revision reflects strained credit metrics, particularly leverage and fixed charge coverage, according to the agency.

It will be difficult for Duke to improve these metrics over the intermediate term, the agency said, as its operations will likely continue to be hurt by the slowing economy and capital markets could remain constrained.

The Baa1 senior unsecured debt rating reflects Duke Realty's solid liquidity supported by ample bank line availability, unencumbered properties and a staggered debt maturity schedule, Moody's said.

Ratings also reflect Duke's proven track record with a well-regarded franchise, the agency added.

The agency said it could lower ratings if Duke's debt-to-EBITDA ratio rises above mid- to low-7x on a consistent basis.

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