Moody's drops General Growth

Moody's Investors Service said it has downgraded the ratings on General Growth Properties, Inc., certain of its subsidiaries and the Rouse Co. LP to C from Ca senior secured bank debt to C from Ca senior unsecured debt.

This concludes Moody's review.

The agency said that the rating action reflects a heightened likelihood of economic default and the potential for above-average loss severity on General Growth and Rouse debt, adding that the REIT's failure to repay $395 million of senior unsecured debt bonds at the Rouse Co. LP level on March 16, coupled with about $1.2 billion in past-due mortgage debt, including $900 million related to mortgage loans secured by the Fashion Show and Palazzo shopping centers in Las Vegas, will likely trigger an imminent acceleration of the Rouse bonds and the General Growth senior secured bank debt.

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