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Fitch Expects to Rate ERP Operating L.P.'s Unsecured Notes 'A-'; Outlook Negative

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^{Published in Business and Finance on Monday, July 12th 2010 at 9:05 GMT by Market Wire}  

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings expects to assign an 'A-' rating to the unsecured notes being offered by ERP Operating Limited Partnership, the operating partnership of Equity Residential (NYSE: EQR). Net proceeds from the offering are expected to be used to reduce outstanding indebtedness and for general corporate purposes. The Rating Outlook is Negative.

EQR's 'A-' Issuer Default Rating (IDR) and senior unsecured debt ratings reflect EQR's solid franchise, consistent cash flow coverage metrics and strong liquidity management. Franchise strength is evident in EQR's broad geographic diversification, focus on longer-term high growth markets, demonstrated access to multiple forms of capital, consistent operating strategy and an adequate level of unencumbered assets.

The Negative Outlook reflects that, absent deleveraging, fixed charge coverage will likely trend below 2.0 times (x) and leverage will likely increase above 8.0x, metrics which are more appropriate for an IDR below 'A-'.

For additional information, please refer to Fitch's Sept. 30, 2009 press release, 'Fitch Affirms Equity Residential's IDR at 'A-'; Outlook Negative,' available at '[ www.fitchratings.com ]'.

Relevant Fitch Criteria:

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

--'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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