Fitch affirms Equity Residential

Fitch Ratings said it affirmed Equity Residential and ERP Operating LP's issuer default ratings at BBB+.

Equity Residential's preferred stock was affirmed at BBB-, and ERP's senior notes were affirmed at BBB+.

The outlook is stable.

Ratings are supported by Equity Residential's solid franchise, consistent cash flow coverage metrics and strong liquidity management, the agency said.

Ratings are also supported by strong property-level fundamentals, the agency said.

The company's net debt to recurring operating EBITDA for the 12 months ended Sept. 30 was 7.0x, down from 8.0x and 7.8x as of Dec. 31, 2010 and 2009, respectively.

Offsetting the company's strengths are its near-term debt maturities, which drives an average liquidity coverage ratio and may result in higher fixed charges due to the company refinancing lower-cost debt at higher rates, the agency noted.

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