Moody's cuts Columbia Property

Moody's Investors Service said it downgraded the issuer rating of Columbia Property Trust, Inc. to Baa3 from Baa2 and the senior unsecured debt rating of its main operating subsidiary, Columbia Property Trust Operating Partnership, LP to Baa3 from Baa2.

“Today's rating actions reflect the office REIT's high net debt/EBITDA, which is a function of its large and mostly unleased development pipeline as well as recent core portfolio vacancies. We expect the REIT will face challenges as it seeks to increase operating cash flow given the weak office environment, particularly within its core central business district (CBD) markets,” Moody’s said in a press release.

The outlook is negative.

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