Moody's trims Washington Prime

Moody's Investors Service said it downgraded all of Washington Prime Group Inc.'s ratings, including the ratings of its operating subsidiary, Washington Prime Group, LP's senior unsecured debt to Caa1 from B1. At the same time, Moody's placed the ratings, except the speculative grade liquidity rating, under review for downgrade. The speculative grade liquidity rating was downgraded to SGL-4 from SGL-3.

“The rating downgrade reflects our expectation of continued weak performance from WPG's mall portfolio amidst an increasingly challenging operating environment. The REIT's high leverage and weak liquidity position, including the potential for it to breach its debt covenants, are additional credit considerations,” the agency said in a press release.

Moody's said its review will consider the cash flow risk associated with the REIT's mall portfolio, including its effect on leverage and prospects for remaining in compliance with its debt covenants.

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