S&P lifts Sovran Self Storage

Standard & Poor’s said it raised the corporate credit and issue-level ratings on Sovran Self Storage Inc. to BBB from BBB-.

The outlook is stable.

The upgrades reflect an expectation that Sovran will maintain its improved credit protection measures as healthy U.S. self-storage fundamentals continue, marked by limited new supply and steady demand from a gradually improving economy, S&P said.

The agency said it does not anticipate any significant shifts in financial policy and believes the company will manage future acquisitions with a combination of equity and debt. Even though Sovran has a less diversified funding base compared with peers, S&P said it thinks the company will refinance debt maturities with more diverse sources of capital over the next two years instead of relying on bank term loans and a revolver.

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