S&P assigns recovery of 2 to DDR notes

Standard & Poor's said the BBB- rating on DDR Corp.'s unsecured notes is based on the company's satisfactory business risk profile, reflecting its geographically diverse portfolio of generally younger, good quality properties.

The agency said it considers the company's financial risk profile to be significant based on improving, but still elevated leverage metrics relative to most peers.

S&P also said it assigned a recovery rating of 2 to this debt, indicating 70% to 90% expected default recovery.

Due to the prospects for substantial recovery, the agency said it notches the rating on the senior unsecured notes above the corporate credit rating.

S&P said it reviewed the company's ratings, which were under observation, after the publishing of its revised criteria Nov. 19.

The agency said it expedited the review of its ratings on DDR because of the company's announced debt issue.

With the review complete, S&P said the ratings are unaffected by the criteria changes.

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