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S&P lifts Education Realty from junk
Standard & Poor’s said it raised the corporate credit rating on Education Realty Trust Inc. and its operating partnership, Education Realty Operating Partnership LP, to BBB- from BB+.
The outlook is stable.
The agency also said it affirmed the BBB- rating on the company’s senior unsecured notes and the recovery rating was withdrawn.
The upgrade acknowledges the company’s improved credit metrics following the early November equity issuance that resulted in proceeds of about $270 million and reflects the company’s strong leasing results for the 2015-2016 academic year, S&P said.
The agency said it believes the company’s stabilized communities will deliver modest growth, supported by favorable near-term fundamentals and supplemented by the delivery of new development projects.
These factors support the stable outlook, S&P said.
The company also is expected to sustain a debt-to-EBITDA ratio of less than 7x while transitioning to a more conservative balance sheet, the agency added.
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