Fitch applies BBB- to SL Green notes

Fitch Ratings said it assigned a BBB- rating to the $500 million of 3.25% senior unsecured notes due 2022 issued by SL Green Operating Partnership, LP, the operating partnership of SL Green Realty Corp.

The $500 million notes were priced at 99.893% of the principal amount to a re-offer yield at 3.273% or a 135 basis point spread over the benchmark rate. The company intends to repay the $295 million of 3% exchangeable senior notes due 2017 and other future indebtedness.

Fitch's said the ratings consider SLG's credit strengths, including its strong competitive position and high-quality New York office portfolio that enjoys high occupancy rates, long-term leases to solid credit tenants, and above-average contingent liquidity from institutional lenders and investors.

The company also has manageable, well-balanced lease maturity and debt expiration schedules as well as limited floating-rate debt exposure, the agency added.

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