Standard&Poor's Ratings Services' ratings on Newton, Mass.-based Government Properties Income Trust (GOV) reflect the REIT's modest financial profile, characterized by low leverage, above-average debt service and fixed-charge coverage, and a substantially unencumbered property portfolio. However, the company's asset base, composed of 71 office buildings (9.0 million sq. ft.), 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. We also view GOV's relatively limited operating history as a public REIT, the high percentage of floating-rate debt in its capital structure,
