Reckson ratings upgraded by Moody's.Reckson Associates Realty Corp. announced that Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. upgraded its ratings of Reckson Operating Partnership, L.P. senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. to an investment grade rating of Baa3 from Bal. The ratings outlook is stable. These rating actions result from a number of significant balance sheet enhancements executed by Reckson during 2004. During this period Reckson raised over $436 million in common equity in three separate issuances. Reckson also converted or redeemed approximately $240 million of Preferred Equity, reducing its fixed charges by approximately $18 million. These actions have resulted in a material reduction to Reckson's leverage ratio and significant improvement to Reckson's coverage ratios. Michael Maturo, Reckson's Chief Financial Officer stated, "We have restructured our balance sheet over the last year to demonstrate our commitment to the unsecured debt markets. Moody's ratings upgrade is a substantial recognition of our efforts." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Moody's, Reckson's ratings are supported by its high quality office portfolio in high barrier entry markets, diverse tenant mix, manageable near-term lease expirations, staggered tenant maturities, and improved transparency and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. . Moody's notes that Reckson's office portfolio continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. its improving sub-markets. Its occupancy has increased to 94% from 91% at yearend 2003; further demonstrating Reckson's capacity to create value in its office portfolio. Scott Rechler, Reckson's Chief Executive Officer stated, "A key part of the reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. that we embarked upon a year ago was to regain the Company's investment grade rating. We are very pleased by the ratings upgrade." |
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