Government Properties Income Trust 'BBB-' Corporate Credit And Issue-Level Ratings Affirmed; Outlook Stable

U.S.-based REIT Government Properties Income Trust's leverage metrics increased after it took an ownership stake in Select Income REIT (SIR) in 2014. We expect its metrics will improve, but at a slower-than-anticipated pace given the weak office real estate fundamentals in some of the company's key markets. However, relatively strong job growth in the U.S. and slow but steady government spending growth should support overall stable operating performance and credit metrics. We are affirming our 'BBB-' corporate credit and issue-level ratings on Government Properties Income Trust (GOV). The stable outlook on GOV reflects our expectation for flat performance from its property portfolio. We expect leverage will continue to trend down as the additional net operating income (NOI) stream from its

...+ U.S.-based REIT Government Properties Income Trust's leverage metrics increased after it took an ownership stake in Select Income REIT (SIR) in 2014. We expect its metrics will improve, but at a slower-than-anticipated pace given the weak office real estate fundamentals in some of the company's key markets. However, relatively strong job growth in the U.S. and slow but steady government spending growth should support overall stable operating performance and credit metrics. + We are affirming our '###-' corporate credit and issue-level ratings on Government Properties Income Trust (GOV). + The stable outlook on GOV reflects our expectation for flat performance from its property portfolio. We expect leverage will continue to trend down as the additional net operating income (NOI) stream from its ownership stake in SIR results in debt to EBITDA approaching 6.0x by 2016. NEW YORK (Standard & Poor's) Oct. 20, 2015--Standard & Poor's Ratings Services today said it affirmed its '###-'corporate...

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