S&P cuts Glimcher

Standard & Poor's said it lowered the corporate credit rating on Glimcher Realty Trust to BB- from BB and its $210 million of preferred stock to B- from B.

The outlook remains negative.

S&P said the downgrades reflect concerns regarding the REIT's constrained financial profile and its smaller, less competitively positioned portfolio.

Recessionary pressures, higher costs of capital and more-restrictive lending standards will likely weigh on the value of Glimcher's comparatively small regional and super-regional shopping center portfolio, the agency added.

Glimcher's portfolio is well-occupied and coverage of fixed charges has remained steady, albeit at low levels, the agency noted. The company has also successfully sourced mortgage capital to meet maturing debt obligations thus far in 2008.

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