Fitch: Essex loan, notes BBB

Fitch Ratings said it assigned Essex Property Trust, Inc. and its operating partnership Essex Portfolio LP BBB issuer default ratings.

Fitch assigned Essex's preferred stock a BB+ rating and Essex Portfolio's $275 million revolving credit facility and senior notes BBB ratings.

The outlook is stable.

The ratings center on Fitch's expectation that Essex's near-to medium-term credit profile will be consistent with a BBB rating, the agency said.

The ratings are supported by Essex's moderate leverage, consistent coverage of fixed charges and strong unencumbered asset coverage of unsecured debt, Fitch said.

The ratings consider the company's almost exclusive use of secured debt, geographically concentrated portfolio, active development pipeline and recent acquisitions of assets with large amounts of vacancy, and recent missteps in the utilization of forward-starting swap contracts, the agency added.

The net debt-to-recurring operating EBITDA for the year ended Dec. 31 was 8.3 times.

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