S&P lowers DuPont Fabros view to stable

Standard & Poor’s said it revised its ratings outlook on DuPont Fabros Technology Inc. and its subsidiary, DuPont Fabros Technology LP, to stable from positive.

The agency also said it affirmed the BB- corporate credit ratings on both entities.

S&P also said it affirmed the BB rating on the company’s senior unsecured notes due 2021 and the recovery rating remains at 2.

The outlook revision reflects a reassessment of the significance of its high tenant and asset-base concentration, said Scott Sprinzen, an S&P analyst.

There is limited room for better pricing in the data-center space as compared to previous expectations, Sprinzen said in a press release.

Stronger competition in the industry from in-house data centers also will constrain the company’s ability to increase rental prices in the next few years, the analyst added.

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