S&P Global Ratings revised its outlook on diversified real estate investment trust W. P. Carey Inc. to positive and affirmed its BBB issuer credit rating.
The rating agency views W. P. Carey's recent deleveraging efforts as favorable, saying the company's issuance of $398 million of equity year-to-date following the $292 million it issued in the fourth quarter of 2018 surpassed its expectations.
The rating agency also views the REIT's $5.9 billion merger with Corporate Property Associates 17 - Global Inc. as a positive transaction, as it bolstered the company's competitive edge by increasing its scale and improving its diversification. The merger also increased W. P. Carey's exposure to long-term triple-net leases, thereby improving the company's cash flow stability. The benefits were partially offset by the assumption of $2.1 billion of mortgage debt, Ratings noted.
The positive outlook takes into account Ratings' expectation that W. P. Carey will modestly improve its credit protection measures over the next two years.
Ratings said it views W. P. Carey's liquidity as adequate.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.