Fitch Ratings affirmed Hudson Pacific Properties Inc.'s issuer default rating at BBB-, with a stable outlook.
The affirmation is based on the office landlord's strong competitive market position in the West Coast office markets. The rating agency is also of the view that Hudson Pacific's financial policies are appropriate for a low investment-grade-rated real estate investment trust, while its large unencumbered asset pool provides contingent liquidity.
Fitch assumes the company's value-added acquisition growth strategy to be riskier than acquiring stabilized core properties.
Hudson Pacific is expected to maintain debt to EBITDA leverage in the low- to mid-6.0x range through the cycle, after adjusting for partial period investments.