Fitch cuts General Growth

Fitch Ratings said it has downgraded the issuer default ratings and outstanding debt ratings of General Growth Properties and its subsidiaries as follows: General Growth's issuer default rating to B from B+ and GGP Ltd. Partnership's issuer default rating to B from B+, revolving credit facility to B-/RR5 from B/RR5, term loan to B-/RR5 from B/RR5, exchangeable senior notes to B-/RR5 from B/RR5 and perpetual preferred stock (indicative) to CCC/RR6 from CCC+/RR6 as well as the Rouse Co. LP's issuer default rating to B from B+ and senior unsecured notes to B-/RR5 from B/RR5.

The ratings remain on rating watch negative by Fitch.

The agency added that the rating actions are based on the resignations of John Bucksbaum and Robert Michaels from their positions as GGP's chief executive officer and president, respectively.

While Bucksbaum and Michaels will remain as GGP's chairman and chief operating officer, respectively, Fitch said it is concerned that these management changes may be disruptive to the company's daily management and execution of financial and strategic alternatives, the pursuit of which was announced by GGP on Sept. 22.

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