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Fitch Rates Regency Centers, L.P. $150MM Sr. Unsecured Notes 'BBB+'; Outlook Negative

^{Published on 2010-05-28 08:31:05 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has assigned a 'BBB+' rating to the new $150 million 6.00% coupon rate senior unsecured notes due June 15, 2020 issued by Regency Centers, L.P., the operating partnership of Regency Centers Corporation (NYSE: REG). The notes were priced at 99.299% of their face amount to yield 6.094% to maturity. Net proceeds from the offering will be used to reduce outstanding indebtedness and for general corporate purposes. The Rating Outlook is Negative.

REG's 'BBB+' Issuer Default Rating (IDR) and senior unsecured debt ratings reflect the solid quality of Regency's retail shopping center portfolio, the extent to which the company's recurring operating EBITDA covers its fixed charges, its sizable unencumbered asset pool, and a diversified base of tenants, with its largest tenants representing high quality grocery anchors, tenants that historically performed well during periods of economic slowdowns.

The Negative Rating Outlook reflects that pro rata leverage, measured as net debt to recurring operating EBITDA remains high for the 'BBB+' IDR. In addition, Regency's fixed charge coverage is low for the IDR. The Negative Rating Outlook also takes into account that Regency's operating performance is expected to weaken further in 2010 and 2011, placing pressure on leverage and coverage metrics, absent deleveraging transactions.

For additional information, please refer to Fitch's April 9, 2010 press release, 'Fitch Affirms Regency Centers' IDR at 'BBB+', Outlook to Negative,' available at '[ www.fitchratings.com ]'.

Relevant Fitch Criteria:

--'Criteria for Rating U.S. Equity REITs and REOCs' (Apr. 16, 2010);

--'Equity Credit for Hybrids & Other Capital Securities - Amended' (Dec. 29, 2009);

--'Rating Hybrid Securities' (Dec. 29, 2009);

--'Recovery Rating and Notching Criteria for REITs' (Dec. 23, 2009);

--'Corporate Rating Methodology' (Nov. 24, 2009);

--'Parent and Subsidiary Linkage' (June 19, 2007).

Additional information is available at [ www.fitchratings.com ].

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