Moody's revised its ratings outlook on Office Properties Income Trust to stable from negative, and affirmed the company's Baa3 senior unsecured rating.
The revised outlook takes into account the substantial completion of the office real estate investment trust's disposition program, reducing its debt and improving its asset quality and operating outlook.
The company completed two mergers recently, which reduced its reliance on government tenants to 26% of its annualized rents as of the third quarter of 2019 from 46% the previous year. The rating agency sees this as credit positive since federal and state entities are reducing office space requirements and consolidating into owned space.
The affirmation reflects the Newton, Mass.-based REIT's scale and diversification, with a portfolio including single-tenant net leased assets and properties leased to government agencies.