Fitch assigns BB+ rating to Vornado Realty Trust's US$175M 8.75% stock issue; rating outlook stable

Cindy Allen

Cindy Allen

NEW YORK , April 15, 2011 () – Fitch Ratings has assigned a 'BB+' rating to the new $175 million 6.875% Series J Preferred Stock issued by Vornado Realty Trust (NYSE: VNO). Proceeds from the offering will be contributed to Vornado Realty, L.P., the operating partnership of VNO, in exchange for preferred units of the operating partnership. The operating partnership will use the proceeds for general business purposes, which may include payment of the redemption or repurchase price for preferred stock and units.

Fitch currently rates Vornado Realty Trust and Vornado Realty, L.P. as follows:

Vornado Realty Trust

--Issuer Default Rating (IDR) 'BBB';

--Preferred stock 'BB+'.

Vornado Realty, L.P.

--IDR 'BBB';

--Unsecured bank credit facilities 'BBB';

--Senior unsecured notes 'BBB'.

The Rating Outlook is Stable.

For additional information, please refer to the full rating report 'Vornado Realty Trust', dated March 3, 2010, which is available at 'www.fitchratings.com'.

Vornado Realty Trust is an equity real estate investment trust (REIT) based in New York. As of Dec. 31, 2010, the company had total book assets of approximately $20.5 billion. The company has four primary business platforms aggregating more than 100 million square feet along with several other sizable investments related to real estate. They are the Manhattan office, Washington D.C. office, Retail, and Merchandise Mart. The company also manages real estate for third parties.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Equity REITs and REOCs', Mar. 15, 2011;

--'Corporate Rating Methodology', Aug. 13, 2010;

--'Rating Hybrid Securities', Dec. 29, 2009;

--'Equity Credit for Hybrids & Other Capital Securities - Amended', Dec. 29, 2009;

--'Recovery Rating and Notching Criteria for REITs', Dec. 23, 2009;

--'Vornado Realty Trust', March 3, 2010.

Applicable Criteria and Related Research:

Vornado Realty Trust (Vornado Realty L.P.)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=502648

Equity Credit for Hybrids & Other Capital Securities - Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493112

Rating Hybrid Securities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

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