S&P rates AvalonBay notes BBB+

Standard & Poor's said it assigned a BBB+ senior unsecured debt rating to AvalonBay Communities Inc.'s $250 million 5.7% senior unsecured notes due 2017 and $250 million senior unsecured notes due 2020.

AvalonBay will use proceeds from the senior notes to fund a recently announced tender offer for up to $300 million of senior notes maturing in 2010, 2011 and 2012, to repay the outstanding balance under the company's line of credit and for general corporate purposes.

The outlook is stable.

According to S&P, the ratings reflect that even though AvalonBay's apartment portfolio remains under pressure, the company has a relatively sound balance sheet, with currently strong coverage measures and sufficient liquidity, which should remain adequate to weather a period of weak demand.

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