Fitch Ratings affirmed Gramercy Property Trust Inc.'s BBB issuer default and BB+ preferred stock ratings.
The rating agency also assigned a BBB rating to the senior unsecured notes due 2022, 2025 and 2026 issued by GPT Operating Partnership LP and GPT Property Trust LP. It also affirmed GPT Operating Partnership and GPT Property's respective senior unsecured revolving credit facilities, senior unsecured term loans and senior unsecured notes at BBB.
The outlook is stable.
Fitch credited the action to Gramercy's strong management team; solid credit metrics; consistent cash flow growth from its granular portfolio of largely single-tenant, triple-net leased properties; and expanding unencumbered asset pool.
However, these strengths are tempered by the company's less-established access to unsecured debt capital, and increased office exposure, Fitch said.
The rating agency said it expects Gramercy to operate within its metric targets over the rating horizon and to be able to resolve any potential tenant credit concerns, resulting in its stable outlook.