S&P rates General Growth loan BB+

Standard & Poor's said it assigned its BB+ bank loan rating to a $9.75 billion three-tranche term loan and revolving credit facility to finance General Growth Properties Inc.'s merger with The Rouse Co.

Additionally, this rating is placed on CreditWatch with negative implications, where the corporate credit rating assigned to General Growth was placed pending the successful completion of the recently announced merger with The Rouse Co.

The bank facility is being syndicated and is expected to close on or around Nov. 12, which follows the Nov. 9 Rouse shareholder vote. The borrowers under the credit facilities are General Growth Properties Inc., GGP LP, and GGPLP LLC.

"The bank loan rating reflects General Growth's materially enhanced market position upon completion of the merger, the addition of Rouse's high quality and very stable mall assets, a broadened geographic platform, and material bank loan amortization beginning in 2006, which the company should be able to meet through a combination of sources," said S&P credit analyst Jeanne Sarda.

"These strengths are tempered by the very aggressive financing to be employed in this transaction and a preponderance of mortgage debt within the capital structure, as well as the risks related to integrating the Rouse platform while successfully refinancing a large amount of debt in a potentially rising interest rate environment."

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