Social Issues

Fitch: More Upgrades A Possibility for U.S. REITs in 2007 

Improving property operating results and sustained discipline by managements in keeping stable financial profiles continue to augur for a Positive Outlook for U.S. REITs in 2007, with potential for rating upgrades in the office and retail sector, according to a special report released yesterday by Fitch Ratings. “Fitch will consider more positively those management teams that do not excessively raise leverage and companies that possess varied access to capital and a large unencumbered asset pool, while remaining alert to any significant increases in leverage that may weaken fixed-charge coverage,” said Managing Director and REIT group head Steven Marks.