Standard&Poor's Ratings Services' ratings on Newton, Mass.-based Government Properties Income Trust (GOV) reflect the REIT's modest financial profile, characterized by very low leverage, above-average debt service and fixed-charge coverage, and a substantially unencumbered property portfolio. However, the company's asset base consists of 64 office buildings (7.6 million sq. ft.) that are leased primarily to government tenants and is small compared with similarly rated REITs. This contributes to our view that GOV's business risk profile is fair. Additionally, although its tenant credit quality is high, GOV's exclusive focus on government-leased buildings could limit the REIT's growth opportunities and access to equity capital over the longer term. As a result, our ratings reflect our expectation that debt levels will rise
