Fitch gives BBB- to Spirit Realty

Fitch Ratings said it assigned Spirit Realty Capital, Inc. an issuer default rating of BBB-.

The outlook is stable.

Fitch said the ratings reflect Spirit Realty’s solid credit metrics, strong management team, differentiated investment strategy and diversified portfolio. These strengths are balanced by unproven access to non-bank/nonconvertible unsecured debt capital and the implications of the master trust debt facility.

The principal considerations are that a significant percentage of Spirit Realty’s NOI is collateralized by the Trust facility, providing incentive for Spirit Realty to support it more so than traditional single asset mortgages.

Moreover, should Spirit Realty look to unwind the structure as the notes issued through it are either prepaid or mature, there are structural elements that will result in the structure becoming over-collateralized and by extension weakening unencumbered asset coverage until the final dollar of trust debt is repaid, Fitch said.

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