S&P cuts Archstone

Standard & Poor's said it took the following rating actions affecting Archstone-Smith Operating Trust and Archstone-Smith Trust, the REIT, after the Oct. 5 close of the company's leveraged acquisition by a partnership sponsored by Tishman Speyer Real Estate Venture VII LP (not rated) and Lehman Bros. Holdings Inc. (A+/stable/A-1) for $23.3 billion:

• Lowered its corporate credit ratings on Archstone and the REIT to BB- from BBB+ and removed them from CreditWatch with negative implications, where they were placed on May 30 and then withdrew the rating on the REIT;

Assigned Archstone's new parent entities, Tishman Speyer Archstone-Smith Multifamily Guarantor LP and Tishman Speyer Archstone-Smith Multifamily Parallel Guarantor LLC, BB- corporate credit ratings; and

• Assigned a rating of BB- and a 4 recovery rating to Archstone's $5.1 billion secured credit facility, which consists of a $2.4 billion term loan A, a $1.98 billion term loan B and a $750 million revolver.

The outlook is stable.

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