Fitch affirms Boston Properties

Fitch Ratings said it affirmed Boston Properties Inc. and Boston Properties LP's issuer default rating at BBB, unsecured revolving credit facility at BBB, senior unsecured notes at BBB, exchangeable senior unsecured notes at BBB and preferred stock at BB+.

The outlook is stable.

The affirmation is supported by a strong management track record, a high quality portfolio of assets, manageable lease expirations, a good liquidity position, sizable pool of unencumbered assets, reasonable leverage and good access to a range of capital sources, according to the agency.

Ratings reflect challenging market fundamentals, a projected decline in fixed charge coverage in 2010 and sizable exposure to tenants in the legal community, the agency said.

The company also maintains a fairly concentrated operational footprint with some asset concentration, which provides some additional inherent risk, Fitch noted.

The company's net debt-to-recurring operating EBITDA ratio is estimated at 5.9x. Fitch said it projects that this ratio will increase to between 6x and 7x in and then decline to closer to 6x in 2012.

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