Fitch upgrades Sovran to BBB

Fitch Ratings said it upgraded the ratings of Sovran Self Storage, Inc. and its operating partnership Sovran Acquisition, LP to BBB from BBB-.

The outlook is stable.

Fitch said the upgrade reflects its expectation that Sovran will be able to maintain leverage between 4 times and 4.5 times through-the-cycle despite the inherent cyclicality in self-storage operating fundamentals due in part to the favorable structural changes in the competitive landscape between local operators and public REITs. The agency expects Sovran will seek to issue its inaugural public unsecured bond later in 2016, which would improve its access to capital.

These positive elements are balanced, in part, by a concentrated debt maturity schedule, the inherent cyclicality in fundamentals given the sector's short lease term and a smaller, geographically concentrated portfolio.

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