S&P: Reckson still on watch

Standard & Poor's said its corporate credit and debt ratings on Reckson Associates Realty Corp. and Reckson Operating Partnership LP (BBB-/Watch negative) remain on CreditWatch with negative implications following the Jan. 25 closing of the merger of Reckson with and into SL Green Realty Corp. (not rated).

According to S&P, SL Green assumed roughly $1.26 billion of Reckson's senior unsecured notes and the agency said it believes the majority of these are now held within a subsidiary.

The subsidiary is expected to conform to the covenants that currently govern those notes, S&P said, adding that it recently met with SL Green management to discuss our assessment of its overall credit quality.

Given SL Green's currently indeterminate credit quality and the company's historical preference for secured borrowing, the agency said it is likely to resolve the CreditWatch placements on the Reckson senior unsecured debt ratings with either a one-notch downgrade or an affirmation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.