Moody's may upgrade PS Business Parks

Moody's Investors Service said it placed PS Business Parks Inc.'s Ba1 preferred stock rating on review for possible upgrade, reflecting the REIT's continued improvement in core operations and success at enhancing value from its recent acquisitions.

Moody's said the REIT's long history of maintaining a conservative balance sheet, earmarked by low leverage, little secured debt and strong fixed charge coverage, continues to be a key credit strength.

The REIT's focus on small and mid-sized office/industrial business park and flex properties remains a credit concern given the potentially more volatile and management-intensive nature of such properties, however. Other credit challenges include rising operating costs and continued rent roll-downs and vacancy challenges in certain markets, the agency said.

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