S&P: Reckson unchanged

Standard & Poor's said its BBB- ratings on Reckson Associates Realty Corp. and its operating partnership, Reckson Operating Partnership LP, would not be affected by Reckson's $250 million exchangeable senior debentures issuance or by the recently announced strategic initiative to form a trust to be listed on the Australian stock exchange.

Proceeds from the issuance of 4% exchangeable debentures due 2025 will repay outstanding line balances, lengthening the company's debt tenor while maintaining current debt coverage measures, the agency noted.

However, Reckson's formation of an entity to be publicly traded in Australia poses both financial and business credit considerations, S&P said.

Operating and financial reporting complexity will increase, though the ability to access a new source of capital could modestly enhance financial flexibility, the agency added.

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