S&P lowers Glimcher

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

The outlook remains negative.

"Our one-notch downgrade reflects our expectations for further erosion of the REIT's constrained financial profile and its smaller, less competitively positioned portfolio in the context of the ongoing weakness in the retail sector," S&P analyst Linda Phelps said in a statement.

"However, Glimcher's portfolio was well occupied and coverage of fixed charges remained steady, albeit at low levels, through fiscal 2008. In addition, the company's ability to cover all recurring capital expenditures and dividends with operating cash flow has been enhanced following the March 2009 dividend cut, which is expected to conserve roughly $36 million in capital."

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