Fitch rates Healthcare Realty notes BBB-

Fitch Ratings said it assigned a credit rating of BBB- to the $250 million 3.75% senior unsecured notes due 2023 issued by Healthcare Realty Trust.

The notes were issued at 99.179% of par.

The proceeds will be used to redeem the company's 5.125% senior unsecured notes due 2014.

In the interim, proceeds will be used to repay borrowings under its unsecured credit facility and for general corporate purposes.

Fitch said it views the issuance favorably as it increases the weighted average maturity and lowers the weighted average cost of debt outstanding.

Healthcare Realty has an issuer default rating of BBB-, BBB- rating on its $700 million unsecured revolving credit facility rating and BBB- rating on its $1.2 billion senior unsecured notes rating.

The outlook is stable.

The ratings reflect the company's geographically diversified portfolio, positive medical office fundamentals, stable operating cash flows, solid liquidity and manageable debt maturity schedule, Fitch said.

The ratings are balanced by a focus on shorter-term leases, the slow lease-up of properties in stabilization, a willingness to let credit metrics weaken for extended periods of time and an elevated adjusted funds from operations payout ratio, the agency said.

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