Fitch cuts Washington Prime

Fitch Ratings said it downgraded the long-term issuer default rating of Washington Prime Group, Inc. and Washington Prime Group, LP to RD from C. Fitch also affirmed the senior secured revolver and term loans at CCC-/RR2 and the senior unsecured notes at C/RR4.

“The downgrade of WPG's IDR to RD reflects the multiple extensions of the initial forbearance agreement that followed the March 16, 2021 expiration of the 30-day grace period that resulted from a missed interest payment on Feb. 15, 2021. Fitch believes that the only resolution of the company's capital structure is through a near-term restructuring event or a potential bankruptcy filing,” the agency said in a press release.

WPG continues discussions with its lenders and has indicated that a Chapter 11 bankruptcy filing is possible. If that happens, the agency said it would likely lower the IDR to D, before assigning new ratings to reflect the post reorganization capital structure and business profile, Fitch said.

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