trending Market Intelligence /marketintelligence/en/news-insights/trending/1azDWKYbqAP-6UKG2Yyc1g2 content esgSubNav
In This List

S&P affirms Spirit Realty in wake of REIT spinoff plan

Case Study

An Investment Bank Taps S&P's Real Estate Modeling Expertise

Blog

FIMA EUROPE 2023: Exploring the Intersection of Data, Governance, and Future Trends in Finance

Podcast

Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

Blog

Infographic: The Big Picture 2024 – Energy Transition Outlook


S&P affirms Spirit Realty in wake of REIT spinoff plan

S&P Global Ratings affirmed its ratings on Spirit Realty Capital Inc. and its operating partnership, following the company's announcement that it plans to spin off its Shopko-leased properties and other assets into a real estate investment trust.

The affirmed ratings are Spirit's BBB- corporate credit rating and the BBB- issue-level rating on its senior unsecured notes.

S&P said it considers the planned spinoff "slightly favorable," as it is likely to improve the company's tenant mix and credit protection measures but not adequately to warrant a positive rating action at this time.

The outlook is stable, reflecting S&P's expectations for Spirit to successfully execute the spinoff, to modestly improve its debt leverage post-spinoff and to carry out more asset sales than acquisitions in the near term. The rating agency added that pro forma for the spinoff transaction, the company is likely to see its fixed charge coverage climb to the high-2x area and its debt-to-EBITDA ratio fall to the low-6x area.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.