S&P rates General Growth loans BB+

Standard & Poor's said it assigned a BB+ bank loan rating to General Growth Properties Inc.'s $2.85 billion term loan and new $650 million revolving credit facility, which are part of a $5 billion-plus recapitalization plan to refinance the credit facility put in place in 2004 to finance the acquisition of The Rouse Co.

The BBB- corporate credit rating was affirmed, and the outlook remains negative.

S&P said the ratings acknowledge General Growth's strong market position as one of the top two players in the highly concentrated U.S. regional mall sector, a high quality portfolio and solid operating performance, particularly in view of the ongoing integration of the assets attained through the Rouse acquisition, which doubled the company's portfolio size in just over a year.

These strengths are tempered by the company's very aggressive financial profile, which is characterized by a highly leveraged balance sheet and weak coverage metrics. As of Sept. 30, leverage was roughly 60% on a market capitalization basis and 89% on a fully depreciated book capitalization basis, the agency said.

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