Fitch Ratings assigned a first-time BBB- long-term issuer default rating to data center real estate investment trust CyrusOne Inc., with a stable outlook.
The same rating was assigned to the long-term issuer default and senior unsecured ratings of the REIT's operating partnership, CyrusOne LP.
Fitch said the ratings factor in the high quality and strong locations of the REIT's data center assets.
The rating agency expects the REIT to see continued strong growth, driven by robust, low-double-digit demand growth in the data center industry in the next several years.
The rating agency also expects CyrusOne to sustain net debt to recurring operating EBITDA in the mid-5x range throughout its 2022 rating case projections.
The REIT's credit positives are offset by its evolving liability profile and less developed access to capital, Fitch noted, adding that the REIT has moderate tenant concentration risk that is mitigated by strong tenant credit quality.
