...Credit spreads within the comm ercial real estate debt mark ets have continued to widen in recent weeks. In this special report, Fitch Ratings looks forward and analyzes the impact that wider credit spreads may have on interest coverage ratios of U.S. equity real estate investment trusts (REITs). Specifically, Fitch examined the effect of wider credit spreads on REITs recurring operating earnings before interest, taxes, depreciation, and amortization (EBITDA), as well as all-in EBITDA. Based on data for the trailing 12 months ended Sept. 30, 2008, Fitch s sensitivity analyses revealed that a 460 basis point (bp) in crease in the total cost of debt would result in a decline to 1. 5 times (x) from 2.8x in the Fitch recurring operating EBITDA to interest expense ratio. Fitch also found that a 600 bp increase in the total cost of debt would result in a declin e to 1.5x from 3.2x in the total EBITDA to interest expense ratio. In the event that REITs access the unsecu red bond...