Tenant Credit Ratings

The following ratings and probability estimates provided for general information purposes only and should not be relied on without further verification.

Tenant Credit Ratings
& PROBABILITY OF DEFAULT

Tenant Stock
Symbol
Standard
& Poors
Probability
of Default
(5 years)
Moodys Probability
of Default
(5 years)
7-Eleven SE AA- 0.20% Baa3 4.00%
A&P GAP B- 43.00% Caa2 60.00%
Abercrombie & Fitch ANF - - - -
Advance Auto AAP BBB- 4.00% Ba1 7.00%
Aeropostale ARO - - - -
American Eagle AEO - - - -
Ann Taylor ANN NR - - -
Apple Inc. AAPL - - - -
Ashland Inc ASH BB+ 7.00% Ba1 7.00%
AT&T T A 0.60% A2 0.60%
AutoZone AZO BBB 2.00% Baa2 2.00%
Babies "R" Us   - - - -
Bank of America BAC A 0.60% A2 0.60%
Barnes & Noble BKS NR - Ba2 9.00%
BB&T   A 0.60% A1 0.40%
Bebe BEBE - - - -
Bed, Bath & Beyond BBBY BBB 2.00% - -
Benetton BNGPY.PK - - - -
Best Buy BBY BBB- 4.00% Baa2 2.00%
Big 5 Sporting
Goods Corp
BGFV NR - - -
Big Lots Inc. BIG BBB- 4.00% - -
BJsWholesaleClub BJ - - - -
Blockbuster
Entertainment
BBI CC 60.00% Caa3 60.00%
Books-A-Million BAMM - - - -
Borders Group Inc BGP - - - -
BP America BP AA- 0.20% Aa3 0.20%
Bridgestone / Firestone BFNT - - NR -
Brinker Intemational EAT BBB- 4.00% Ba1 7.00%
Build-A-Bear
Workshop
BBW - - - -
Burger King Corp BKC BB- 19.00% Ba2 9.00%
Cache CACH - - - -
California
Pizza Kitchen
CPKI - - - -
Capital One
Financial Corp
COF BBB+ 1.50% Baa1 1.50%
Carrols Corp /
Carrols Restaurant Group Inc
TAST B 31.00% - -
Casual Male Corp CMRG NR - NR -
CBRL Group CBRL BB- 19.00% Ba3 19.00%
Charlotte Russe   - - - -
Charming Shoppes CHRS B- 43.00% NR -
Chase Bank JPM AA- 0.20% Aa1 0.15%
Cheesecake Factory CAKE - - - -
Chevron Corp CVX AA 0.20% Aa1 0.15%
Chico's CHS - - - -
Children's Place PLCE - - - -
Circle K
(Alimentation Couche-Tard)
ANCUF BB+ 7.00% NR -
Citibank C A+ 0.40% A1 0.40%
Citizens Bank CRBC NR - NR -
CKE Restaurants CKR BB- 19.00% Ba3 19.00%
Coach COH NR - - -
Coldwater Creek CWTR - - - -
Cost Plus Inc. CPWM - - - -
Costco Wholesale Corp COST A+ 0.40% A2 0.60%
CVS CVS BBB+ 1.50% Baa2 2.00%
Darden Restaurants DRI BBB 2.00% Baa3 4.00%
DaVita Inc DVA BB- 19.00% Ba3 19.00%
Delhaize Group S.A. DELB:BB BBB- 4.00% Baa3 4.00%
Denny's Inc. DENN NR - Ba2 9.00%
Dillard's Inc. DDS B+ 25.00% B2 31.00%
DineEquity DIN - - - -
Dollar General DG BBB- 9.00% B1 25.00%
Dollar Tree DLTR - - - -
Dress Barn DBRN - - - -
DSW DSW - - - -
Eddie Bauer EBHI NR - NR -
Einstein Noah BAGL - - NR -
Exxon Mobil XOM AAA 0.15% Aaa 0.15%
Family Dollar FDO - - - -
FedEx FDX BBB 2.00% Baa2 2.00%
Fifth Third Bancorp FITB BBB 2.00% - -
Finish Line FINL - - - -
Food Lion
(DelhaizeAmerica)
DEG BBB- 4.00% Baa3 4.00%
Foot Locker FL B+ 25.00% Ba3 19.00%
Fred's FRED - - - -
Fresenius
Medical Care AG
FMS BB 9.00% Ba1 7.00%
Fresh & Easy TSCO A- 0.60% A3 0.60%
Frisch's
Restaurants
FRS - - - -
Gamestop Corp GME BB+ 7.00% Ba1 7.00%
Goodyear Tire &
Rubber Company
GT BB- 19.00% Ba3 19.00%
Gottschalks GOTTQ:OTC - - - -
Guess GES - - NR -
Gymboree GYMB - - - -
Hhgregg HGG B+ 25.00% Ba3 19.00%
HibbettSports HIBB - - - -
Home Depot HD BBB+ 1.50% Baa1 1.50%
Hot Topic HOTT - - - -
Ingles Markets Inc IMKTA BB- 19.00% Ba3 19.00%
J.Crew JCG BB+ 7.00% NR -
J.P. Morgan
Chase & Co.
JPM A+ 0.40% Aa3 0.20%
Jack in The Box JBX BB- 19.00% Ba3 19.00%
JC Penney JCP BB+ 7.00% Ba1 7.00%
Jos A. Bank JOSB - - - -
Kenneth Cole KCP - - - -
Key Bank KEY BBB+ 1.50% Baa1 1.50%
KinderCare (Knowledge
Learning Corporation)
KLC NR - B1 25.00%
Kohl's Corp. KSS BBB+ 1.50% Baa1 1.50%
KoninkIijke
AhoId N.V.
AHONY.PK BBB 2.00% Baa3 4.00%
Kroger KR BBB 2.00% Baa2 2.00%
Landry's Restaurants LNY - - B2 31.00%
Limited LTD BB 9.00% Ba2 9.00%
Liz Claibome LIZ B- 43.00% B3 43.00%
Longs Drugs/CVS CVS - - - -
Lowe's LOW A+ 0.40% A 0.40%
Luxxotica LUX - - - -
Macy's Inc. M BB+ 7.00% Ba1 7.00%
Max & Erma's MAXE - - - -
McCormick & Schmick's MSSR - - - -
McDonalds Corp. MCD A 0.60% A3 0.60%
Men's Wearhouse MW - - - -
Morton's Restaurant Group MRT - - NR -
Mothers Work Inc DEST B 31.00% B2 31.00%
NationsBank of Texas NB NR - - -
NewYork& Co. NWY - - - -
Nordstrom JWN BBB+ 1.50% Baa2 2.00%
Office Depot ODP B 31.00% B2 31.00%
Office Max OMX B- 43.00% B1 25.00%
O'Reilly Auto Parts ORLY BBB- - - -
Osco Drug SVU see Supervalu - - -
Owens Corning OC BBB- 4.00% Ba1 7.00%
Pacific Sunwear PSUN - - - -
Panera PNRA - - - -
Payless Shoe Source PSS B+ 25.00% B1 25.00%
Pep Boys PBY B- 43.00% B2 31.00%
Petsmart PETM BB 9.00% NR -
PF Chang's China bistro PFCB - - - -
Pier 1 Imports PIR - - NR -
PNC Bank PNC A+ 0.40% A1 0.40%
Polo Ralph Lauren RL BBB+ 1.50% Baa1 1.50%
Publix   A 0.60% - -
Raytheon Company RTN A- 0.60% Baa1 1.50%
Radio Shack RSH BB 9.00% Ba1 7.00%
RBC Bank RY A- 0.60% A1 0.40%
Red Robin Gourmet Burgers RRGB - - - -
Regal Entertainment Group RGC B+ 25.00% NR -
Regis Corporation RGS - - - -
Rite-Aid RAD B- 43.00% Caa2 60.00%
Ross Stores ROST BBB 2.00% - -
Rubio's Restaurants RUBO - - - -
Ruth's Hospitality Group RUTH - - - -
Safeway SWY BBB 2.00% Baa2 2.00%
Saks Inc. SKS B+ 25.00% B2 31.00%
Sears Holdings SHLD BB- 19.00% Ba2 9.00%
Shell Oil RDS.A AA 0.20% Aa2 0.20%
Sherwin-Williams SHW A- 0.60% A3 0.60%
Shoe Carnival SCVL - - - -
Shoe Pavilion SHOEQ - - - -
Skechers SKX - - - -
Sonic Corporation SONC - - NR  
Staples SPLS BBB 2.00% Baa2 2.00%
Starbucks SBUX BBB+ 1.50% Baa3 4.00%
Stein Mart, Inc. SMRT - - - -
Steve Madden SHOO - - - -
Supervalu SVU BB- 19.00% Ba3 19.00%
Syms SYMS - - - -
Talbot's TLB - - - -
Target TGT A+ 0.40% A2 0.60%
The Bon Ton Stores Inc BONT B 31.00% B3 43.00%
The Buckle, Inc. BKE - - - -
The Cato Corporation CATO - - - -
The Cheesecake Factory CAKE - - - -
The Gap, Inc. GPS BB+ 7.00% NR -
Tiffany & Co. TIF - - NR -
TJ. Maxx/Marshalls/
Home Goods (TJX Cos Inc)
TJX A 0.60% A3 0.60%
T-Mobile USA
(Deutsche Telekom)
DT BBB+ 1.50% Baa1 1.50%
Tractor Supply Company TSCO - - - -
Triarc Companies TRY NR - NR -
True Religion TRLG - - - -
Urban Ouffitters URBN - - - -
US Bancorp USB A+ 0.40% Aa3 0.20%
VCA Veterinary Hospital WOOF BB 9.00% Ba2 9.00%
Verizon VZ A 0.60% A3 0.60%
Wachovia Corp WB NR - A1 0.40%
Walgreen Co WAG BBB+ 0.60% A2 0.60%
Wal-Mart WMT AA 0.20% Aa2 0.20%
Walt Disney CO DIS A 0.60% - -
Weis Markets WMK - - - -
Wells Fargo WFC AA- 0.20% A1 0.40%
Wendy's/Arby's Group WEN B+ 25.00% B2 31.00%
West Marine WMAR - - - -
Whole Foods WFMI BB- 19.00% Ba3 19.00%
Williams-Sonoma WSM - - - -
Wilson's WLSN - - NR -
Winn-Dixie WIN NR - NR -
Yum! Brands YUM BBB- 4.00% Baa3 4.00%
Zale CP ZLC NR - NR -

What is a NNN Lease?

In a triple-net lease (NNN), the tenant pays all the operating expenses, property taxes, utilities, insurance premiums, maintenance and repairs. The landlord gets to collect monthly net rental income just as he or she would with a traditional real estate investment. Such a lease usually extends over the long term, with a financially strong corporate entity guaranteeing a lease anywhere from 10-25 years.

Example:

Wendy’s is your tenant for a guaranteed 20-year period. The tenant is responsible for all costs to operate and maintain the property, this is sometimes referred to as an “absolute” Triple-Net lease because the only management required is paying the mortgage (if there is one) and receiving the rent checks. Triple-Net lease ownership is great for first-time real estate investors as well as for long time investors seeking purchase or trade into less complicated real estate investments. In many cases, when the lease expires, you will own the property free and clear.

The price range for a NNN lease property is generally between $1 million - $7 million. The fast food restaurants and auto stores and are the most affordable, while drugstores are on the higher end. Big box retailers such as Home Depot, Lowe’s, and Publix can bring from $15 million to $25 million.