Fitch Ratings said Thursday that it has affirmed Mack-Cali Realty Corp.'s (CLI) and Mack-Cali Realty L.P.'s credit ratings, including the Issuer Default Rating at 'BBB'.
The Rating Outlook is Stable.
Fitch said the affirmation reflects the company's long-standing track record of conservative balance sheet management. However, leverage continues to increase, is weak for the rating and forecasted to remain weak even after adjusting upwards Fitch's rating sensitivities to reflect the transition towards becoming a suburban office/multifamily hybrid REIT. Fitch's forecast contemplates Mack-Cali raising material amounts of equity to fund multifamily developments and acquisitions and to de-lever; therefore the ratings would likely come under pressure absent equity issuance.
Supporting the ratings are adequate fixed charge coverage, manageable debt maturities and appropriate liquidity. The rating also takes into account sustained weakness in operating fundamentals for the suburban office portfolio, the rating agency noted.
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