S&P: DDR preferreds at B

Standard & Poor's said it assigned its B rating to DDR Corp.'s $200 million series J 6.5% cumulative preferred shares.

According to S&P, the company indicated it will use proceeds from the offering to redeem its outstanding $170 million series I 7.5% cumulative preferred shares and for general corporate purposes, which may include redemption of a portion of the company's outstanding series H 7.375% preferred shares. The transaction will reduce interest expense by close to $2 million a year, assuming DDR uses excess proceeds to redeem a portion of the series H shares, and marginally improve fixed-charge coverage.

S&P said its positive outlook on DDR reflects its belief that fixed-charge coverage will begin to improve in the next 12 months, as new lease commencements accelerate in the second half of 2012.

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