Moody's affirmed the Alexandria, Va.-based company's senior unsecured debt ratings at "Baa1."

The outlook revision reflects current volatility in the capital markets, which will limit AvalonBay's access to public capital sources, Moody's said. However, Moody's believes the company has adequate liquidity to meet near-term needs and is encouraged by the company's solid operating performance and conservatively managed balance sheet.

AvalonBay shares rose $3.45, or 3.4 percent, to close at $104.27. Shares have traded between $79.16 and $138.28 in the past 12 months.