Moody's affirmed the B1 senior unsecured debt rating on QTS Realty Trust Inc.'s operating partnership and withdrew the data center real estate investment trust's B1 corporate family rating.
The rating agency also assigned a B1 corporate family rating to QualityTech LP and a speculative grade liquidity rating of SGL-2.
The operating partnership's rating outlook was revised to positive from stable, while the REIT's stable outlook was withdrawn.
The positive outlook reflects the improved earnings quality and increased EBITDA margin of the REIT, thanks to its strategic shift to hybrid colocation and select hyperscale opportunities from noncore cloud and managed services products. The steady demand for data center assets also contributed to the positive outlook, according to the rating agency.
