S&P Global Ratings affirmed its ratings on Digital Realty Trust Inc. and revised the ratings outlook to stable from positive.
The affirmation pertains to the data center real estate investment trust's BBB issuer credit and issue-level ratings and BB+ preferred stock rating, among others.
The stable outlook takes into account the rating agency's view that the REIT will continue to benefit from robust fundamentals driving demand for data center space. Ratings projects that Digital Realty will maintain debt to EBITDA in the low- to mid-6x area over the next few years.
The rating agency also noted that even after factoring in Digital Realty's recent $1.4 billion data center deal with Singapore's Mapletree Investments Pte Ltd. and Mapletree Industrial Trust — which lowers leverage moderately — the REIT is expected to struggle to meet triggers for an upgrade given the ongoing significant amount of development it is expected to undertake over the next few 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.
