Moody’s rates Franklin Street Properties debt Baa3

Moody's Investors Service said it assigned a Baa3 rating to Franklin Street Properties Corp.'s (FSP) debut senior unsecured debt issue.

In the same action, the agency affirmed FSP's Baa3 issuer and provisional Baa3 senior unsecured shelf ratings.

The outlook is stable.

Moody’s said the Baa3 ratings reflect FSP's fully unencumbered asset portfolio, high fixed-charge coverage ratio and strong relative position in its operating markets.

“The REIT's material exposure to Houston and modest operating margins are also significant credit considerations. With the unsecured note issue, the REIT has demonstrated moderate improvement in capital access,” the agency said in a news release.

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