Fitch affirms Grainger

Fitch said it affirmed Grainger plc's long-term issuer default rating at BB with a stable Outlook.

The rating of its senior secured notes is affirmed at BB+.

Fitch said the ratings reflect Grainger's focus on the London residential market, a defensive £1.9 billion property portfolio concentrated on regulated tenancies, and the company's recent deleveraging driven by divestments.

Unlike investment-grade REIT peers, Grainger's business model relies more on proceeds from portfolio sales than on recurring rental income, although Fitch recognizes management's plans to increase rental income significantly by 2020.

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