Fitch Rates Public Storage's $400MM 5.9% Series S Preferred Stock 'A-'; Outlook Stable

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NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns a credit rating of 'A-' to the $400 million 5.9% Series S preferred stock issued by Public Storage (NYSE: PSA). Net proceeds from the offering of approximately $388.1 million before the exercise of the over-allotment option are expected to be used to redeem 6.75% Series L preferred stock for approximately $206.7 million, to make investments in self-storage facilities and in entities that own self-storage facilities, to redeem other preferred securities, and for other general corporate purposes.

Fitch currently rates Public Storage and its subsidiary Shurgard Storage Centers, LLC as follows:

Public Storage

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

--$300 million unsecured revolving line of credit 'A';

--$3.3 billion preferred stock 'A-'.

Shurgard Storage Centers, LLC

--IDR 'A';

--$186.5 million senior unsecured notes 'A'.

The Rating Outlook is Stable.

For additional information, please refer to the April 11, 2011 full rating report 'Public Storage,' which is available at 'www.fitchratings.com'.

Public Storage is an equity real estate investment trust (REIT) that went public in November 1980 and that as of Sept. 30, 2011 had approximately $12.4 billion in gross book assets and a total market capitalization of $22.6 billion. As of Sept. 30, 2011, Public Storage held direct and indirect equity interests in 2,056 storage facilities located in 38 states in the United States. Public Storage also owns one facility in London, England and has a 49% interest in Shurgard Europe, which owns 188 self-storage facilities located in seven Western European countries. In addition, as of Dec. 20, 2011, Public Storage owned a 42% equity interest in PS Business Parks, Inc. (NYSE: PSB), which owned and operated 27.2 million rentable square feet of commercial space across 11 states in the U.S.

Additional information is available at 'www.fitchratings.com'. The ratings above were unsolicited and have been provided by Fitch as a service to investors.

Applicable Criteria and Related Research:

--'Treatment and Notching of Hybrids in Nonfinancial Corporate and REIT Credit Analysis', Dec. 15, 2011;

--'Corporate Rating Methodology', Aug. 12, 2011;

--'Parent and Subsidiary Rating Linkage', Aug. 12, 2011;

--'Recovery Rating and Notching Criteria for Equity REITs', May 12, 2011;

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

Applicable Criteria and Related Research:

Criteria for Rating U.S. Equity REITs and REOCs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=610687

Recovery Rating and Notching Criteria for Equity REITs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=628490

Parent and Subsidiary Rating Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647210

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

Treatment and Notching of Hybrids in Nonfinancial Corporate and REIT Credit Analysis

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656516

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