Fitch REIT Credit Analysis: Equity Residential's Ratings Reflect Diverse Portfolio, Solid Cash Flow

Mon. August 04, 2008; Posted: 01:20 PM

NEW YORK, Aug 04, 2008 (BUSINESS WIRE) -- EQR | Quote | Chart | News | PowerRating -- Equity Residential's (NYSE:EQR) strong franchise, solid cash flow metrics, seasoned management and robust corporate governance platform provide ample downside protection to unsecured bondholders, according to the latest Credit Analysis report by Fitch Ratings.

Fitch affirmed Equity Residential with a Stable Rating Outlook on July 15, 2008. Fitch's latest Credit Analysis of Equity Residential, which provides more detail supporting Fitch's ratings, is available on the Fitch web site www.fitchratings.com.

Fitch currently rates Equity Residential as follows:

--Issuer Default Rating (IDR) 'A-';

--$200 million preferred stock 'BBB+';

--$10 million convertible preferred stock 'BBB+'.

Fitch currently rates ERP Operating Limited Partnership as follows:

--IDR 'A-';

--$4.5 billion senior unsecured notes 'A-';

--$650 million exchangeable senior notes 'A-'.

Primary credit strengths include the following:

--Diversified property portfolio;

--Manageable debt maturity schedule;

--Strong liquidity position;

--Experienced management team.

Primary credit concerns include the following:

--Increased leverage and declining unencumbered asset coverage metrics;

--Slowdown in employment may affect rent growth prospects.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.

SOURCE: Fitch Ratings

Fitch Ratings, New York Steven Marks, 212-908-9161 Sean Pattap, 212-908-0642 or Media Relations: Brian Bertsch, 212-908-0549

For full details on Equity Residential (EQR) click here. Equity Residential (EQR) has Short Term PowerRatings of 5. Details on Equity Residential (EQR) Short Term PowerRatings is available at This Link.

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