Fitch lifts Grainger, notes

Fitch Ratings said it upgraded Grainger plc’s long-term issuer default rating to BB+ from BB and senior secured notes to BBB- from BB+.

The outlook is stable.

Fitch said the action reflects the significant progress the company has made toward increasing EBITDA generated by private rented sector assets, which is improving Grainger's business profile by reducing the variability of its income.

“Unlike its peers, Grainger's business model still relies on proceeds from asset sales rather than on recurring rental income. Fitch views reversionary disposal profits as more volatile than contracted rental income, but we acknowledge that in a large portfolio the number of units released per year tends to be predictable,” the agency said in a news release.

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