Standard&Poor's Ratings Services' ratings on Government Properties Income Trust (GOV) reflect the REIT's "modest" financial risk profile, characterized by low leverage, above-average debt service and fixed-charge coverage (FCC), and a substantially unencumbered property portfolio. However, the company's asset base, composed of 82 office buildings (10 million sq. ft.), is small compared with similarly rated REITs. This contributes to our view that GOV's business risk profile is "fair." We also view GOV's shorter weighted average lease term, high percentage of floating-rate debt, and fairly aggressive dividend policy as credit weaknesses. Newton, Mass.-based GOV is a publicly held REIT with an undepreciated book capitalization of approximately $1.5 billion as of Sept. 30, 2012. The REIT, formed in early 2009, owns
