Fitch rates ERP Operating notes BBB+

Fitch Ratings said it assigned a rating of BBB+ to ERP Operating LP’s $450 million aggregate principal amount of 2.375% senior unsecured notes due 2019 and $750 million aggregate principal amount of 4.500% senior unsecured notes due 2044.

The 2019 notes were issued at 99.900% of par value to yield 2.396%, or 70 basis points, over the benchmark rate and the 2044 notes were issued at 99.297% of par value to yield 4.543%, or 115 bps, over the benchmark rate, the agency said.

The proceeds will be used for working capital and general company purposes, including repayment of all or a portion of the outstanding balance under its unsecured revolving credit facility and all or a portion of the outstanding balance under its unsecured term loan facility, Fitch said.

Equity Residential has an issuer default rating of BBB+, unsecured revolving term loan rating of BBB+ and preferred stock rating of BBB-.

ERP Operating has an issuer default rating of BBB+, unsecured revolving credit facility rating of BBB+ and senior unsecured notes rating of BBB+.

The outlook is stable.

The ratings are supported by the company’s focus on high-quality properties in strong markets and sound financial management, Fitch said.

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