DENVER--(BUSINESS WIRE)--Apartment Investment and Management Company (“Aimco”) (NYSE: AIV, AIVPrA, AIVPrZ) announced today that Fitch Ratings (“Fitch”) has upgraded Aimco to BBB-, with a stable outlook from BB+, with a positive outlook.
Terry Considine, President and Chief Executive Officer, commented, “Aimco’s balance sheet strategy focuses on the use of non-recourse, amortizing, fixed rate property debt and perpetual preferred stock. This strategy provides for lower entity risk, lower refunding risk and lower re-pricing risk. Also, as we undertake occasional development, we consider unfunded development risk in calculating our leverage and typically secure a commitment of property debt to fund 50% or more of the construction cost of new building. We are pleased that this strategy has resulted in our balance sheet being recognized as investment grade by Fitch.”
Ernie Freedman, Executive Vice President and Chief Financial Officer added, “We appreciate Fitch’s careful consideration of the safety of Aimco’s balance sheet. We are pleased to now be rated investment grade by Fitch in addition to Standard & Poor’s. Aimco is committed to continuing to improve our balance sheet by further reducing leverage through amortization of property debt paid from retained earnings, by increasing earnings as redevelopment and acquisition properties are stabilized, and by growing our pool of unencumbered properties. While being rated investment grade allows for future consideration of the use of unsecured debt, Aimco does not anticipate doing so.”
Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with 198 communities in 23 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.