Fitch Ratings affirmed EastGroup Properties Inc.'s ratings, including itsissuer default rating, senior unsecured line of credit, senior unsecured termloans and senior unsecured notes at BBB.
The rating agency also affirmed the same set of ratings forEastGroup Properties LP at BBB. It assigned BBB ratings to certain obligationsco-issued by the company and the operating unit, including the $75 million termloan due Feb. 28, 2022; $25 million senior unsecured notes due Oct. 1, 2025;and $50 million senior unsecured notes due Oct. 7, 2025.
The outlook is stable.
Fitch said the credit ratings take into account the company's"granular" industrial portfolio across the southern U.S. The ratingagency also cited "generally healthy" industrial market fundamentals,EastGroup's "strong" fixed-charge coverage for the rating, as well assufficient leverage and contingent liquidity offered by its unencumberedassets, as credit positives.
Given the "sharply lower" energy prices, EastGroup'sportfolio overweight in the oil-focused Houston market, however, is a creditconcern, according to the rating agency.
Moody's recently affirmedthe company's issuer rating at Baa2.