Moody’s puts Apartment Income on watch

Moody's Ratings said it placed its ratings for Apartment Income REIT, LP (AIR) on review for downgrade including its Baa2 issuer rating, (P)Baa2 backed senior unsecured shelf rating, and (P)Baa3 backed subordinate shelf rating. Previously, the outlook was stable.

On Monday, AIR announced that Blackstone Real Estate plans to acquire the multifamily REIT for about $10 billion. The transaction is expected to close in the third quarter of 2024 and is subject to shareholder approval.

The review for downgrade reflects the expectation that if AIR becomes a privately held company it will adopt a more aggressive financial policy with higher secured debt and leverage levels, the agency said.

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