Moody's revised the outlook on VEREIT Inc.'s operating partnership to stable from negativeand affirmed its Ba1 senior unsecured rating.
The rating agency noted that its action on the unit, VEREIT OperatingPartnership L.P., reflects VEREIT's ongoing work to improve its credit metrics andremediate its accounting and internal control issues from 2014, when accounting irregularities were firstrevealed.
The stable outlook reflects Moody's expectation that the companywill continue to improve its governance and financial profile, addressing such itemsas its fixed-charge coverage, secured debt and net debt/EBITDA.
An upward ratings movement could occur if the company consistentlykeeps its net debt/EBITDA ratio around 6.5x, its fixed-charge coverage at or above2.5x, its leverage below 45% and its secured debt closer to 10%.
A ratings downgrade could result from effective leverage above50%, net debt/EBITDA over 7x, fixed-charge coverage below 2.2x and any liquidityissues regarding debt maturities.