Moody's: Select Income view to negative

Moody's Investors Service said it revised Select Income REIT's outlook to negative from stable and affirmed all of the company's existing ratings, including the Baa2 issuer and senior unsecured ratings.

The outlook revision reflects an expectation that Select Income's leverage will remain high given the limited de-leveraging opportunities for the balance of the year, Moody's said.

The ratings reflect an expectation that the REIT will make the necessary adjustments to its capital structure in order to reduce leverage and maintain credit metrics in the next 12- to 18-months, the agency said.

The outlook revision reflects increasing concerns about the company's persistently high financial leverage and debt levels, Moody's said.

The ratings also consider Select Income's stable cash flows from long-term triple net leases, good liquidity position and large unencumbered asset pool, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.