Fitch rates DDR loan BB+

Fitch Ratings said it assigned a BB+ credit rating to the $250 million unsecured term loan closed by DDR Corp. The issuer default rating is BB+.

The term loan consists of a $200 million tranche due Jan. 31, 2019 with an initial interest rate of Libor plus 210 basis points (swapped into a fixed rate of 3.64%) and a $50 million tranche due Jan. 31, 2017 with an initial rate of Libor plus 170 bps.

Proceeds from the term loan will be used to retire $184.1 million of convertible notes maturing in March 2012, reduce the outstanding balances under the company's revolving credit facilities and for general corporate purposes.

The rating reflects management's focus on improving the company's credit profile via improved liquidity through retained cash flow as well as reduced development risk.

The company's net debt to third quarter annualized recurring operating EBITDA including recurring cash distributions from unconsolidated entities was 8.3x compared with 8.6x at Dec. 31, 2010 and 10.0x at Dec. 31, 2009.

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