S&P Global Ratings revised its outlook for Regency Centers Corp. to positive from stable, affirming its issuer default rating at BBB+.
The rating agency also affirmed the BBB+ issue-level rating on the real estate investment trust's senior unsecured notes.
The outlook revision reflects S&P's view that the company's cash flow will remain stable despite challenges in the retail market, with planned asset disposals to help improve its leverage over the next few quarters. The positive outlook also reflects the REIT's intention to keep its leverage low over the next several years.
S&P expects Regency Centers to focus on redevelopments in the face of the current cap rates for property purchases, with the company's credit metrics projected to receive a boost in the upcoming two years.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found in the sources section.