Fitch Downgrades Camden Property Trust's IDR to 'BBB'; Revises Outlook to Negative

NEW YORK--(Business Wire)--
Fitch Ratings has downgraded the Issuer Default Rating (IDR) and outstanding
debt ratings for Camden Property Trust (NYSE: CPT) and Camden Summit
Partnership, L.P. as follows:

Camden Property Trust

--IDR to 'BBB' from 'BBB+';

--Unsecured line of credit to 'BBB' from 'BBB+';

--Unsecured term loan to 'BBB' from 'BBB+';

--Senior unsecured notes to 'BBB' from 'BBB+';

--Medium-term unsecured notes to 'BBB' from 'BBB+';

--Perpetual preferred stock (indicative) to 'BBB-' from 'BBB'.

Camden Summit Partnership, L.P.

--IDR to 'BBB' from 'BBB+';

--Medium-term unsecured notes to 'BBB' from 'BBB+'.

In addition, Fitch has revised the Rating Outlook to Negative from Stable.

The downgrade reflects Fitch's view that declining property operating
fundamentals in CPT's markets--particularly Charlotte, Raleigh, Las Vegas,
Tampa, Southeast Florida, Orlando, and Phoenix--will continue to negatively
impact overall portfolio performance. Same-property occupancy growth was flat
and same-property NOI decreased (2.8%) in fourth quarter 2008 (4Q'08), compared
to 4Q'07. On a year 2008 to year 2007 comparison, NOI and occupancy growth were
-0.4% and -0.2%, respectively, and Fitch anticipates further deterioration in
operating performance as challenging market conditions persist.

In a July 10, 2008 release Fitch noted that the existing ratings and Outlook for
CPT could come under pressure if CPT increases its ratio of secured debt to
total undepreciated book capital. CPT's secured debt to undepreciated book
capital ratio increased from 9.7% at June 30, 2008 to 13.5% at Dec. 31, 2008.
Fitch expects that given the dislocations in the unsecured bond market, this
ratio will remain above 15% based on CPT's future utilization of secured debt
through government sponsored entities (GSEs). Fitch also notes that the
increased utilization of secured debt will decrease the size of the unencumbered
asset pool and limit financial flexibility, both of which will negatively impact
bondholders.

Also reflected in the rating downgrade, CPT's liquidity position as measured by
cash, availability under its line of credit, and retained cash flows from
operating activities less debt maturities and recurring capital expenditures,
results in a liquidity shortfall through Dec. 31, 2010. Fitch acknowledges that
the company has endeavored to improve its liquidity position by seeking agency
secured debt as a source of capital to address near-term debt maturities.

Fitch acknowledges CPT's leverage and coverage ratios. CPT's debt plus preferred
units to undepreciated book capital was 52.3% as of Dec. 31, 2008, up slightly
from 51.9% at Dec. 31, 2007. Also reflected is CPT's debt-to-recurring EBITDA
ratio of 7.3 times (x) as of Dec. 31, 2008, compared to 8.5x as of Dec. 31,
2007, and a 2.1x fixed-charge coverage ratio (defined as recurring EBITDA less
capital expenditures and straight-line rents, divided by interest expense,
capitalized interest, and distributions on preferred units) for the 12 months
ending Dec. 31, 2008. Fitch also notes CPT's adequate risk-adjusted
capitalization at 1.2x, which is appropriate for the 'BBB' ratings category.

The Negative Rating Outlook reflects weakening property operating fundamentals
in CPT's markets, and management's estimated same-property NOI declines of -4.5%
to -7.5% during 2009. CPT's earnings power will continue to be adversely
affected by declining property operating fundamentals caused by the recessionary
economy and negative job growth in many of its markets.

The Negative Outlook also takes into account the $51.3 million in impairments
that CPT recognized during 4Q'08 on its development pipeline, exposing it to
further devaluation risk. However, CPT has reduced its development activities
throughout 2009.

Fitch's existing ratings for CPT could come under pressure if (i)Fitch-defined
fixed charge coverage were to fall to 1.5x or lower for several consecutive
quarters, (ii) if CPT's ratio of total debt plus preferred units to
undepreciated book capital were to increase to above 60% for several consecutive
quarters, and (iii) if CPT were to materially increase its utilization of
secured debt such that unencumbered asset coverage were to fall below 1.80x for
several consecutive quarters (2.04x as of Dec. 31, 2008).

Conversely, the current ratings or Outlook may improve if CPT were to increase
same-property NOI by 1% - 5% for several consecutive quarters while maintaining
a minimum fixed charge coverage of 2.25x and a maximum total debt plus preferred
stock to undepreciated book capital ratio of 50%.

CPT is a Houston-based REIT engaged in the ownership, development, construction
and management of multifamily apartment communities. As of Dec. 31, 2008, CPT
had $4.7 billion in total book assets and $1.4 billion in total shareholders'
equity. The company owned interests in 186 multifamily properties comprising
64,329 apartment homes located in 13 states.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, 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.

Fitch Ratings, New York
Taqim Spradley, 212-908-0291
Sean Pattap, 212-908-0642
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com

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