Fitch rates BRE Properties BBB-

Fitch Ratings said it assigned a BBB- rating to the $300 million aggregate principal amount of senior notes due 2021 issued by BRE Properties, Inc.

The notes were issued at 99.809% of par value, with a coupon of 5.2% to yield 5.224%. The offering is expected to close on Sept. 22. The company has an issuer default rating of BBB-, the agency said.

The proceeds will be used to repay borrowings under BRE's $750 million unsecured credit facility and may be used to fund a portion of the purchase price and accrued and unpaid interest on any 4.125% convertible senior notes due 2026, Fitch said.

The ratings reflect its strong liquidity position, solid unencumbered asset coverage of unsecured debt and fixed-charged coverage ratios, the agency said.

Balancing these strengths is challenging operating environment of its assets, which are geographically concentrated in California, Fitch said.

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