S&P Global Ratings affirmed data center real estate investment trust QTS Realty Trust Inc.'s issuer credit rating at BB-, with a stable outlook.
The affirmation is a result of QTS Realty's favorable operating performance in 2018 and S&P's projection that the REIT's leverage metrics will improve due to EBITDA expansion during 2019 and limited use of incremental debt, particularly following the recent equity issuance and a new joint venture.
The stable outlook reflects the agency's expectation that the REIT will maintain a strong operating performance and high capital expenditures, however with limited incremental debt.
S&P estimates the company's debt to EBITDA to decrease to about 8x in 2019.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.