Moody's affirmed its ratings on Regency Centers Corp. and changed the ratings outlook to positive from stable.
The affirmation pertains to the shopping center real estate investment trust's (P) Baa2 preferred shelf rating and the Baa1 and (P) Baa1 senior unsecured debt and shelf ratings, respectively, of Regency Centers LP, among other ratings.
The Baa1 ratings are based on the REIT's high-quality and diversified portfolio of grocery-anchored shopping centers, modest leverage ratios and strong fixed-charge coverage. The rating agency also takes into account the REIT's strong liquidity position and the leverage-neutral funding of its development pipeline and acquisitions, among other factors.
The positive outlook is based on the high likelihood that Regency Centers' prudent approach to managing its portfolio performance and its capital structure would help maintain leverage ratios at about current levels, even in the prevailing retail environment.
