The corporate credit rating for Sovran Self Storage, a self-storage real estate investment trust (REIT) based in Buffalo, N.Y., was raised to stable by Standard & Poor's (S&P) Tuesday. The increase reflects the company’s strengthened financial position following its October stock sale that raised $114 million.
In May, S&P had lowered Sovran’s outlook to negative, citing concerns over the impact the recession was having on the REIT. Fitch Ratings, another credit-rating agency, also downgraded the company to below investment grade earlier in the year.
The stock sale enabled Sovran to pay down some of its debt and reduce its overall leverage. Fitch restored the REIT’s investment grade rating shortly after the stock sale was completed.
Source: The Buffalo News, Sovran Credit Rating Raised