Fitch puts New Plan Excel on watch

Fitch Ratings said it placed the ratings of New Plan Excel Realty Trust, Inc. on Rating Watch negative following the announcement of a pending acquisition of the company by Centro Properties Group and Centro Retail Trust. The all-cash acquisition is valued at $6.2 billion, including the assumption of $1.8 billion in debt and $275 million in preferred securities, and is expected to close in the second quarter of 2007.

Ratings on watch include the BBB+ issuer default rating, BBB+ $1.175 billion senior unsecured notes, BBB+ $350 million revolving bank credit facility and BBB $275 million preferred stock.

The Rating Watch negative is due to Fitch's concerns that Centro will increase New Plan's leverage and rely more heavily on secured debt.

The agency said it expects to resolve the Rating Watch will once Centro's intentions regarding the unsecured notes, bank credit facility and preferred stock are made clear and there is a better understanding of the new venture's structure.

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