Moody’s assigns QTS & QualityTech bond B2

Moody's Investors Service said it assigned a B2 corporate family rating to QTS Realty Trust, Inc. and a B2 senior unsecured rating to QualityTech, LP's proposed bond issuance.

The outlook is stable.

QTS will issue up to $250 million of senior unsecured notes with an eight-year maturity. The notes will be pari passu to other existing and future unsecured debt QualityTech.

Proceeds will be used to pay down existing balances on the company's unsecured term loan and revolving credit facility.

Moody’s said the B2 corporate family and senior unsecured ratings incorporate QTS' fully integrated platform that offers both wholesale (C1) and retail/colocation (C2) services to its customers, as well as cloud and managed services (C3). The company has improved its portfolio occupancy over the past two years to 93% at the first quarter of 2014 from 88% at the first quarter of 2012, mainly through organic growth while maintaining good tenant diversification.

The ratings are further supported by the company's large, high-quality unencumbered asset pool and manageable near-term debt maturities, the agency said.

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