Fitch Ratings affirmed the issuer default ratings of Apartment Investment and Management Co. and its operating partnership, AIMCO Properties LP at BBB-.
Fitch also affirmed its BBB- rating on the company's secured revolving credit facility and its BB rating on the company's preferred stock. The rating outlook is stable.
The rating agency assigned a BBB- rating to Aimco's term loan.
According to a note, the ratings are backed by a projected improvement in leverage, following the pair-trade disposal of assets and repayment of the term loan facility related to the Palazzo acquisition, alongside the formation of a substantial pool of unencumbered assets.
Below-par financial flexibility offsets these strengths as compared to rivals, due to the small absolute size of the company's unencumbered pool.
The stable outlook represents Fitch's anticipation that while critical metrics and portfolio quality may continue to be improved, the bulk of available enhancements have been completed.
Barring a material balancing between the unencumbered and encumbered pools, positive rating momentum is unlikely, the rating agency said.