Fitch rates CenterPoint Properties BBB+

Fitch Ratings said it gave a BBB+ long-term issuer default rating to CenterPoint Properties Trust and an A- rating to the company's senior unsecured debt, which includes credit facilities and unsecured notes.

“The ratings reflect CenterPoint's stand-alone BBB IDR with a one-notch uplift related to its relationship with California Public Employees' Retirement System (CalPERS). CenterPoint's stand-alone credit profile considers the expected leverage level through the forecast period, the asset quality and diversification of the portfolio. CenterPoint is 99% owned by parent CalPERS, the California Public Employees' Retirement System, Fitch said in a press release.

“Given CalPERS's long-term investment focus, the parent is unlikely to require dividends that would imperil the company's real estate investments. However, CenterPoint targets paying 80% of its AFFO to CalPERS but this is completely discretionary. For the remainder of the forecast period, dividends to CalPERS are anticipated to be funded with cash from operations,” the agency added.

The outlook is stable.

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