Moody's upgraded its issuer rating on office real estate investment trust Hudson Pacific Properties Inc. to Baa2 from Baa3 and changed the ratings outlook to stable from positive.
The rating agency also upgraded Hudson Pacific Properties LP's senior unsecured debt rating to Baa2 from Baa3 and its senior unsecured shelf rating to (P)Baa2 from (P)Baa3.
Moody's said the upgrade factors in Hudson Pacific's good liquidity profile and conservative financial policies backed by strong fixed-charge coverage at 3.7x for the second quarter. The rating agency identified geographic and tenant industry concentrations among the key credit challenges for the REIT.
The stable outlook takes into account Moody's expectation that the REIT will continue to see solid operating performance while maintaining its leverage and strong fixed-charge coverage.