Moody's rates Rouse notes Ba1

Moody's Investors Service said it assigned a Ba1 rating The Rouse Co. LP's proposed $500 million senior unsecured and affirmed the company's Ba1 senior debt rating, GGP LP's Ba2 senior secured debt rating, Price Development Co. LP's Ba1 senior debt rating and General Growth Properties Inc.'s Ba2 senior secured bank debt rating. The outlook is stable.

Proceeds from the sale of these notes will be used to repay Rouse's bridge loan.

The agency said the rating on the proposed senior notes reflects the senior status and structural provisions of the issuance, which contains various covenants including debt limitations and minimum debt service coverage requirements. The proposed notes would rank equal with Rouse's other senior unsecured debt.

The ratings reflect parent General Growth's highly leveraged capital structure (debt is about 75% of gross assets), high levels of variable-rate debt and secured debt funding strategy, balanced by the resilience of the regional mall format, the REIT's sizable and good quality portfolio and strong competitive position, Moody's said.

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