Fitch Ratings affirmed the ratings of STAG Industrial Inc. and its operating partnership, including their BBB long-term issuer default ratings, with a stable outlook.
The rating agency also assigned a BBB rating to the $150 million committed term loan that the industrial real estate investment trust plans to draw down in the first half and the $20 million unsecured notes due February 2027.
The action takes into account the company's suitable leverage and fixed charge coverage metrics for the rating, robust liquidity, an ample unencumbered asset pool and increasing access to unsecured debt capital, among other credit strengths.
Fitch said STAG is likely to operate through the cycle with metrics appropriate for the BBB rating, including keeping its net debt to annualized recurring EBITDA in the mid-5.0x range and fixed-charge coverage above 3.0x.
