Fitch lowers Mack-Cali view to negative

Fitch Rating said it revised the outlook on Mack-Cali Realty Corp. to negative from stable and affirmed its issuer default rating at BB.

The ratings reflect the company's high leverage, weak liquidity coverage, aggressive development program, limited unsecured debt and equity capital access and moderate complexity from joint venture investments, which also limits the company's strategic and operational control and lower financial reporting transparency, Fitch said.

The agency said it expects Mack-Cali's leverage will remain elevated in the mid- to high-9x range during the next two years.

The company's growing multifamily portfolio offers better growth and liquidity prospects, even though it comes with elevating development risk, Fitch said.

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