Bay Apartment Communities receives BBB-/baa3 credit ratings.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--May 28, 1997--Bay Apartment Communities Inc. (NYSE/PCX:BYA), today announced it has received credit ratings from Standard & Poor's (S&P) and Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. (Moody's). S&P assigned a BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. corporate credit rating to the company and a preliminary BBB-rating to the company's cumulative preferred stock Cumulative preferred stock Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock. shelf registration and noted a stable outlook for the company. Moody's assigned a prospective rating of baa3 to the cumulative preferred Noun 1. cumulative preferred - preferred stock whose dividends if omitted accumulate until paid out cumulative preferred stock preference shares, preferred shares, preferred stock - stock whose holders are guaranteed priority in the payment of dividends but issuable under the company's shelf registration. The company had not previously been rated. "We did not receive preliminary or prospective ratings for the issuance of unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. because our current shelf registration does provide for its issuance," noted Jeffrey B. Van Horn, chief financial officer. "We have no current plans to issue unsecured debt and intend to finance our growth with a strategic mix of tax-exempt debt, cumulative preferred stock and common equity." "The attainment of investment grade ratings has long been a goal of our management team and is an integral part of our financial strategy. As we move forward with our financial strategy, the ability to issue investment grade preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. should provide us with greater financial flexibility. The attainment of investment grade ratings should also enable us to reduce our cost of capital and improve our spread on new investments," noted Gilbert M. Meyer, chief executive officer. "The level of these initial ratings reflects the quality of the Bay organization." Bay Apartment Communities is a fully integrated, multifamily real estate investment trust focused on the acquisition, development, construction, reconstruction and management of high quality apartment home communities. The company's portfolio consists of 41 apartment communities containing 10,544 apartment homes. The company's portfolio consists of 33 apartment home communities in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay and Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern and eight communities in Southern California. The company also has an additional three communities with 1,325 apartment homes under development in the San Francisco Bay Area. This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained in this release are statements that involve risks and uncertainties, including, but not limited to, market demand, the effect of economic conditions, the impact of competition and competitive pricing, changes in construction scope or cost, the result of financing efforts, actual purchases under agreements, the effect of the company's accounting policies and other risks detailed in the company's Securities and Exchange Commission filings. CONTACT: Bay Apartment Communities Gilbert M. Meyer, Max L. Gardner or Jeffrey B. Van Horn, 408/983-1500 |
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