CyrusOne (CONE) receives BBB- rating from Fitch.
CyrusOne Inc. announced today that its operating partnership has received an investment-grade rating of BBB- from Fitch Ratings. The rating agency cited the "high quality and strong locations" of CONE's portfolio of 41 data center properties, as well as secular industry growth due to continued IT outsourcing and internet expansion. CONE's strong tenant credit quality and disciplined use of debt leverage in the mid-5x range were additional rating positives. Fitch also said data center properties had weaker access to traditional mortgage financing, which reduces contingent sources of liquidity. The agency also described CONE's access to debt capital as "evolving," but expects the company to ultimately enter the corporate bond market to term out floating rate bank debt.
CONE had previously received a BBB- rating from S&P in 2018.