Fitch Downgrades ProLogis’ IDR to 'BB'; Outlook Negative

NEW YORK, NY-- Fitch Ratings has downgraded the Issuer Default Rating (IDR) and outstanding credit ratings of ProLogis (NYSE: PLD) as follows:

--Long-term IDR to 'BB' from 'BBB';
--$2.2 billion global line of credit to 'BB' from 'BBB';
--$4.7 billion senior notes to 'BB' from 'BBB';
--$1.9 billion convertible senior notes to 'BB' from 'BBB';
--$350 million preferred stock to 'B+' from 'BB+'.

The Rating Outlook remains Negative.

Given the limited likelihood of significant near-term de-levering equity capital raises by ProLogis as previously contemplated by Fitch, leverage is expected to remain more consistent with a 'BB' IDR given the significant scale of PLD’s industrial property platform.

The downgrade also reflects Fitch’s expectation that ProLogis’ fixed charge coverage
will continue to be negatively impacted over the next 12-to-24 months by downward mark-to-market pricing on core portfolio leases.

However, a gradual realization of cash flow from completed development properties
in lease-up will bolster ProLogis’ earnings power.

For a complete copy of this news release, showing reasons for the current rating, please contact:

Sean Pattap +1-212-908-0642 or Janice Svec +1-212-908-0304, New York.
Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278:
sandro.scenga@fitchratings.com.
Additional information is available at http://www.fitchratings.com/