Fitch puts Heritage on negative watch

Fitch Ratings said it has placed Heritage Property Investment Trust, Inc. senior unsecured debt securities on rating watch negative after the announced acquisition of Heritage by Centro Watt, a joint venture between Centro Properties Group and Watt Commercial Properties.

Ratings on watch include the $350 million in senior unsecured notes issued by Heritage Property Investment Trust, Inc., rated BBB-, the Heritage unsecured line of credit and bridge loan, rated BBB-; the Heritage long-term issuer rating of BBB-; the 7.2% senior notes issued by Bradley Operating LP, rated BBB-; and Bradley Operating LP's long-term issuer rating BBB-.

Factors incorporated into the rating action include change in access to capital, as the acquiring venture will no longer have access to the public U.S. markets; Fitch expects the venture to increase leverage; and the venture plans to fund the transaction with secured financing.

Fitch said the rating watch will be resolved once Centro Watt's intentions regarding the bonds are made clear.

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