Fitch Ratings affirmed its ratings on data center real estate investment trust Digital Realty Trust Inc., including its BBB long-term issuer default rating, with a stable outlook.
The rating agency said it sees Digital Realty's ownership of the vast majority of its data center portfolio as a positive, which is offset by its more restricted secured mortgage capital access as compared to other REIT asset groups.
Fitch added that it rates Digital Realty higher than its peer Equinix Inc., despite the former's smaller size, because of Digital Realty's larger owned unencumbered property portfolio.
The rating agency also listed several credit strengths for Digital Realty, including a global platform, good access to capital, robust liquidity, granular tenant base, conservative capital-raising strategy and strong management.
The REIT's less established status as a property type and its more restricted access to leverage and to the liquid investment market relative to other commercial property asset classes offset the credit positives, according to Fitch.