Fitch rates Spirit notes BBB-

Fitch Ratings said it assigned a BBB- rating to the senior unsecured notes due 2029 issued by Spirit Realty.

Fitch said it expects the proceeds will be used to repay the company's unsecured line of credit.

In May 2018, Spirit spun-off substantially all of its properties leased to its largest tenant, Shopko, the agency explained.

Following the spin-off, Fitch said it affirmed the company's long-term issuer default rating at BBB- and revised the company's outlook to positive from stable.

As a result of the spin-off, Spirit's credit profile has been strengthened on both sides of the balance sheet through a combination of greater diversification in tenant exposures and stronger credit profiles for those tenants, Fitch said.

Credit concerns include the company's inconsistent access to the public or private placement bond markets, the agency said.

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