Fitch affirms Regency on merger news

Fitch Ratings said it affirmed the ratings on Regency Centers Corp. and its operating partnership Regency Centers, LP at BBB+ upon news that it will acquire Equity One, Inc. in an all-stock transaction.

The outlook is stable.

Fitch said it views the transaction positively given the quality of Equity One’s portfolio, its geographic overlap with Regency’s high barrier markets and the potential for the issuer to have improved access to debt and equity capital as the largest shopping center REIT.

These positive elements are unlikely to result in a materially stronger credit at the onset, but could over time, the agency explained.

A key factor for positive momentum is the demonstration for Regency’s market-leading capital markets access across the broader REIT universe, Fitch said.

The agency said it will watch to see whether this occurs as a result of the transaction.

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