Moody's rates Forest City Enterprises loans B2

Moody's Investors Service said it assigned a corporate family rating of B1 to Forest City Enterprises, LP, along with a senior secured rating of B2 to its proposed $400 million senior secured revolving credit facility due 2022 and $1.25 billion senior secured term loan due 2025.

The outlook is stable.

The ratings reflect the REIT's strong franchise in operating high quality mixed-use projects in urban locations and a portfolio that is well diversified by geography, asset type and tenant, Moody's said.

The REIT's credit profile also benefits from its strong operating performance of stabilized assets in large and in-demand markets, the agency said, as well as implicit support from Brookfield Asset Management post-transaction.

Forest City's high leverage and fully secured debt structure, more than any other factors, constrain its credit quality, Moody's said.

© 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.