Moody's rates American Real Estate

Moody's Investors Service said it assigned a Ba2 rating to the proposed $300 million senior unsecured notes of American Real Estate Partners LP, a master limited partnership that has publicly traded Depository Units.

American Real Estate's general partner is American Property Investors Inc., which is a wholly owned subsidiary of Becton Corp, which is owned by Carl Icahn.

The outlook is stable.

According to Moody's, American Real Estate's Ba2 rating reflects the guarantee by American Real Estate Holdings LP, structural subordination to debt at its operating companies, particularly at American Casino Entertainment Partners, which has $215 million of senior secured notes (rated B2) and mortgage debt at American Real Estate Holdings, the company's opportunistic business strategy, and higher risk characteristics of its operating subsidiaries.

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