Fitch gives BBB- to Terreno notes

Fitch Ratings said it assigned a BBB- rating to the private placement offering issued by Terreno Realty LLC, the operating partnership of Terreno Realty Corp. (TRNO).

The offering consists of $100 million of 3.75% unsecured notes due 2024.

The transaction is anticipated to close on or around July 14.

As part of the use of proceeds, the company intends to redeem all of its 7.75% series A cumulative preferred stock on July 19, 2017.

Fitch said the ratings take into account TRNO's portfolio concentration in strong markets, transparent industrial property-focused business model, experienced management, and credit metrics that are moderately strong for the rating.

The potential for greater cash flow volatility stemming from market, asset and tenant concentration risk and possible missteps surrounding the company's value-added acquisition-led growth strategy balance these credit positives.

Also, the company has a less developed and shorter track record as an unsecured borrower, the agency added.

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