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Fitch affirms Boston Properties ratings

Fitch Ratings affirmed its ratings on office real estate investment trust Boston Properties Inc., with a stable outlook.

The action pertains to Boston Properties' BBB+ long-term issuer default rating and its BBB- preferred stock rating, as well as the BBB+ ratings on Boston Properties LP's long-term issuer default rating, unsecured revolving credit facility, unsecured term loan and senior unsecured notes.

The rating agency said Boston Properties' long-term issuer default rating is largely backed by its above-average portfolio asset quality, experienced and "cycle-tested" management and "excellent" access to capital. The ratings also factor in the REIT's track record of conservative liquidity management and a large portfolio of high-quality, unencumbered assets.

The credit positives are offset by several factors, including the capital-intensive nature of office properties, market and tenant industry concentration risk stemming from Boston Properties' targeted geographic portfolio strategy, and execution and liquidity risks tied to its development platform, Fitch added.

The rating agency expects Boston Properties' leverage to be in the mid- to high-6x range through 2021, and is of the opinion that the REIT is unlikely to issue equity in order to de-lever, though it could resort to opportunistic asset sales.