Fitch Affirms Sovran Self Storage Ratings.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed the 'BBB-' rating on $200 million of senior unsecured notes due 2009-2013 of Sovran Acquisition, L.P., the operating partnership of Sovran Self Storage Inc.(NYSE NYSE See: New York Stock Exchange : SSS SSS abbr. sick sinus syndrome ). Additionally, Fitch has affirmed the 'BB+' rating on SSS' outstanding preferred stock. The Rating Outlook remains Stable. The ratings are supported by the company's strong balance sheet and debt service coverage ratios, its unencumbered asset pool, and solid operating results, as well as its diversified portfolio of 274 self-storage assets. The company's conservative balance sheet management, consistent strategy, and manageable growth offset concerns about the company's small size. Recent hedging activity has the effect of reducing the company's previously meaningful exposure to rising interest rates. At March 31, 2005, Sovran's total debt to undepreciated book capital was 37%, low for the rating category. Debt plus preferred equity to undepreciated book capital was a modest 43%, also at the low end for the rating category, and down from 49.6% two years earlier. The company's exclusive use of unsecured funding (except in its consolidated joint venture) also contributes favorably to the credit profile. Furthermore, Sovran's debt maturity schedule is a strength, with only the company's line of credit ($59 million outstanding at March 31, 2005) maturing before 2009. At quarter-end, Sovran's interest coverage ratio at 4.0 times (x) operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become to interest expense and fixed-charge coverage ratio Fixed-Charge Coverage Ratio A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated as the following: of 3.1x, were solid for the 'BBB-' rating category. The company continues to deliver modest growth in operating earnings, net income, and cash flows despite recent pressure from new supply. Sovran Self Storage is a $735 million (total book capital) equity real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) focused on the acquisition, ownership, management, development, and redevelopment of self-storage properties. Headquartered in Buffalo, New York, SSS' portfolio is geographically diverse, consisting of 274 self-storage assets in 21 states. SSS' primary markets, based on percentage of portfolio revenue, include Florida (22%), Texas (20%), New York (8%), Virginia (7%), and Georgia (7%). Fitch's rating definitions are available on the agency's public web site, 'www.fitchratings.com'. Published ratings, criteria and methodologies, and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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