Fitch Downgrades EOP

The senior unsecured debt and preferred stock ratings of Equity Office Properties Trust, a Chicago-based real estate investment trust, have been downgraded by Fitch Ratings.The debt rating was downgraded from BBB-plus to BBB for EOP and its principal subsidiary, EOP Operating LP, and the stock rating of the parent company was downgraded from BBB to BBB-minus. In explaining the downgrades, the rating agency cited problems related to the portfolio performance and cash flow coverage of EOP, which is the largest office REIT in the United States. "Despite its balance sheet strength, EOP faces challenges in portfolio performance," Fitch said. "Unfortunately, exposure to a sizable pool of underperforming assets continues to pressure portfolio productivity and to jeopardize debt service coverage levels." Fitch can be found on the Web at http://www.fitchratings.com.