Moody's downgrades General Growth, Rouse

Moody's Investors Service said it downgraded the senior secured bank debt of General Growth Properties, Inc. and GGP LP to Caa2 from B3 and Rouse Co., LP's senior secured bank debt and senior unsecured debt to Caa2 from B3.

The ratings remain on review for further possible downgrade.

The agency said the downgrade reflects deepening concerns about the company's ability to meet its near-term debt obligations and funding needs, its severely strained liquidity position, earnings pressure due to distressed and weakening retail economic conditions, and a difficult capital market environment.

General Growth has been exploring alternatives to meet its urgent capital needs, including working on extending the maturity date of the mortgage loans due at the end of November and also marketing for sale its premier Las Vegas malls, Moody's said, adding that the outcome remains uncertain.

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