N@N

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

^{Published on 2010-07-12 09:05:19 - 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 ].

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: [ HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS ]. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '[ WWW.FITCHRATINGS.COM ]'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.