Fitch Downgrades BRE Notes, Stock

The senior unsecured notes and preferred stock of BRE Properties Inc., a San Francisco-based real estate investment trust, have been downgraded by Fitch Ratings.The $955 million of senior notes, due 2004 through 2013, were downgraded from BBB-plus to BBB, and the approximately $129 million of outstanding preferred stock has been downgraded from BBB to BBB-minus, the rating agency said. The rating outlook is Stable. BRE's credit statistics "have been pressured by macroeconomic conditions affecting all apartment owners, primarily a low interest rate environment and job losses which have weakened demand for apartment units," Fitch said. The REIT's exposure to San Francisco (representing 26% of total net operating income) and Seattle (11%) has caused BRE to be disproportionately affected, the rating agency said.