Fitch rates STAG notes BBB-

Fitch Ratings said it assigned a BBB- rating to STAG Industrial Operating Partnership, LP’s $80 million unsecured notes issued through a private placement.

The notes have a 12-year term and bear interest at a fixed rate of 4.42%.

The outlook is positive.

These notes are the first issuance under a $200 million note purchase agreement that STAG announced in November.

STAG Industrial, Inc. has an issuer default rating of BBB- and a BB rating on its $139 million preferred stock.

STAG Industrial Operating Partnership has an issuer default rating of BBB-, BBB- rating its $300 million senior unsecured revolving credit facility, BBB- rating on its $100 million senior unsecured notes and BBB- rating on its $300 million senior unsecured term loans.

The company expects to issue the remaining notes under this purchase agreement on or about Feb. 20, the agency said. The remaining notes are $20 million of additional 12-year notes bearing interest at 4.42% and $100 million of 10-year notes bearing interest at 4.32%, Fitch said.

The ratings reflect STAG’s credit strengths, which include low leverage and strong fixed-charge coverage for the rating, excellent liquidity, a sizable unencumbered asset pool and improving access to capital, the agency said.

These credit positives are balanced by the company’s portfolio concentration in secondary industrial markets and short operating history as a public company, Fitch said.

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