Moody’s trims Brookfield Property

Moody’s Investors Service said it downgraded the ratings of Brookfield Property REIT Inc., including its corporate family rating to Ba3 from Ba2 and its senior secured bank credit facility and senior secured notes to B1 from Ba3.

Brookfield’s speculative grade liquidity rating remains unchanged at SGL-4. The rating outlook is negative. This concludes the review for downgrade started on April 2, Moody’s said.

“The downgrade reflects Brookfield’s elevated leverage entering the pandemic and the high likelihood of weakening operating income in the next four to six quarters such that its net debt/EBITDA will be sustained well above the downgrade trigger of 11.5x on a pro rata JV basis. Moody’s also expects Brookfield to face significant hurdles in order to refinance its large amount of mortgage debt maturities this year while its covenant compliance cushion remains very modest,” the agency said in a press release.

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