S&P cuts Washington REIT

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on Washington Real Estate Investment Trust to BBB+ from A-.

At the same time, the agency said it revised the outlook to stable from negative.

The rating actions affect $880 million in outstanding senior unsecured debt, S&P noted.

"The downgrade was driven by a steady decline of Washington REIT's cash flow coverage measures resulting from debt-financed investment growth over the past three years and higher capitalized interest costs from an expanded development pipeline," said credit analyst Tom Taillon.

"Credit positives, however, include a relatively transparent financial presentation and the company's strengthened investment portfolio of diversified assets in relatively defensive property submarkets."

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