Sovran Self Storage (SSS) Cuts Q2, FY09 Outlooks Due to Fitch Rating Downgrade

May 18, 2009 9:24 AM EDT

Sovran Self Storage, Inc. (NYSE: SSS) today reported that the recent action taken by Fitch Ratings to adjust the credit rating of its unsecured term notes and revolving line of credit to BB+ from BBB- will result in higher interest costs and thus have an impact on its Q2 and FY09 net income and funds from operations.

As a result of these rate increases, the Company expects to incur additional interest costs of approximately $2.6 million for the balance of 2009, and further expects to report a Q2 charge of up to $1 million in waiver, amendment and legal fees associated with its various unsecured notes.

Lowers its Q2 FFO guidance from $0.73-$0.75 to $0.65-$0.67 and its FY09 FFO guidance from $3.00-$3.08. The Street is currently expecting Q2 FFO of $0.76 and FY09 FFO of $2.98.

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