Public Storage

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

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

--$3.4 billion preferred stock to 'A-' from 'BBB+'.

Shurgard Storage Centers, LLC

--IDR to 'A' from 'A-';

--$297.2 million senior unsecured notes to 'A' from 'A-'.

In addition, the Rating Outlook has been revised to Stable from Positive.

The IDR upgrades revolve around the company's highly granular portfolio of over 2,100 self-storage facilities and strong balance sheet, which has been particularly resilient throughout the current recession and as headwinds persist across the capital markets. The company's low utilization of debt and limited refinance risk are a result of PSA's significant utilization of preferred stock, and the company continues to seek avenues towards strengthening its balance sheet.

Most recently, PSA tendered for a portion of bonds originally issued by Shurgard Storage Centers, Inc. and assumed by PSA after the Aug. 22, 2006 merger with Shurgard Storage Centers, Inc. through its subsidiary, Shurgard Storage Centers, LLC. In February 2009, the aggregate consideration for the notes accepted for payment, including accrued and unpaid interest, was approximately $113.0 million, and the principal amount of the notes (Shurgard Storage Centers, LLC's 7.75% notes due 2011 and 5.875% notes due 2013) outstanding prior to the all-cash tender offers was $410.9 million as of Dec. 31, 2008.

As of Dec. 31, 2008 pro forma for the effects of the tender offers, PSA's debt-to-recurring EBITDA and debt-to-undepreciated book capital ratios were strong at 0.5 times (x) and 4.4%, respectively, and Fitch anticipates that these levels will remain consistent going forward.

In addition, based on Fitch's criteria report, 'Equity Credit for Hybrids & Other Capital Securities,' PSA's preferred stock is 75% equity-like and 25% debt-like since PSA's preferred stock is perpetual and has no covenants, but has a cumulative deferral option. Therefore, debt plus 25% of preferred stock-to-recurring EBITDA and debt plus 25% of preferred stock-to-undepreciated book capital were 1.2x and 11.6%, respectively, which is appropriate for an IDR of 'A'.

The upgrade of PSA's preferred stock to 'A-' from 'BBB+' centers on the view that the company's total leverage levels, including debt and all preferred stock, are consistent with an 'A-' rating for the preferred stock.