S&P Puts Taubman Ratings on Watch Developing.
NEW YORK--(BUSINESS WIRE)--Standard & Poor's
Nov. 14, 2002--Standard & Poor's Ratings Services today placed its ratings on Taubman Centers Inc. (Taubman) and Taubman Realty Group L.P. on CreditWatch Developing.
The outlook on the rating was previously stable. The CreditWatch placement impacts roughly $200 million in rated preferred stock, and is in response to the recent unsolicited offer from Simon Property Group Inc. (Simon) ('BBB+'/Watch Neg) (see list).
The CreditWatch designation is warranted because Standard & Poor's believes that the credit implications of a potential transaction could be negative, positive, or neutral depending upon which scenario and/or suitor ultimately prevails and which financing structure employed. Taubman management has formally rebuffed Simon's initial offer.
The ratings on Bloomfield Hills, Mich.-based Taubman were lowered in June 2002 as a result of the combined impact of recently completed, but not yet stabilized, development projects, and a weaker retail leasing environment on the company's financial profile, including debt service coverage measures and general financial flexibility. The revised ratings are supported by Taubman's experienced management team and a seasoned existing portfolio of highly productive regional and super-regional malls. This portfolio includes 20 regional malls, encompassing more than 22 million square feet, including the recently completed Mall at Millenia in Orlando, Fla. Standard & Poor's will monitor developments to assess the likelihood of a transaction actually occurring and the method by which such a transaction would ultimately be financed.
RATINGS PLACED ON CREDITWATCH DEVELOPING Taubman Centers Inc./Taubman Realty Group L.P. Rating To From Corporate Credit Rating BB+/Watch Dev BB+/Stable $200 million 8.3% cum redeem pref stk ser A B+/Watch Dev B+/Stable
Copyright 2002, Standard & Poor's Ratings Services