FSP has been executing a plan to reduce debt through asset sales in a challenging refinancing environment for lower-quality office properties. Consequently, the REIT's portfolio has shrunk to 15 properties, increasing concentration risk and potential earnings volatility. Moody's pointed out that the operating environment for office space in FSP's markets remains difficult and expects the REIT's occupancy to continue to decline as it continues to sell assets. The SGL-4 rating is a reflection of the lack of a revolving credit facility and the REIT's maturity schedule. All outstanding debt, approximately $250 million as of the end of 2024, is due on April 1, 2026. At the end of 2024, FSP had $42.7 million in cash. Moody's cautioned that a slowdown in asset sales or a worsening operating environment could increase the risk of default. The stable outlook is based on Moody's expectations that leverage will remain moderate and that FSP's operating environment will not significantly deteriorate in the coming year.