Moody’s reviews SL Green for downgrade

Moody's Investors Service said it placed the ratings of SL Green Realty Corp. on review for downgrade, including the REIT's (P)Ba1 senior unsecured shelf rating, (P)Ba2 subordinate shelf rating, (P)Ba2 junior subordinate shelf rating, Ba3 preferred stock rating, (P)Ba3 preferred shelf rating and (P)Ba3 preferred shelf non-cumulative rating.

Moody's also placed SL Green Operating Partnership, LP's Ba1 corporate family rating on review for downgrade, as well as its (P)Ba1 senior unsecured shelf rating, (P)Ba2 subordinate shelf rating, and (P)Ba2 junior subordinate shelf rating.

The agency also downgraded SL Green Operating Partnership's speculative grade liquidity rating to SGL-3 from SGL-2. The outlook changed to rating under review from stable.

“Moody's review will focus on SL Green's ability to deleverage through planned asset sales. Management has guided to $2.4 billion in dispositions in 2023, most of which management expects to occur in the second half of the year. These planned sales include reducing its ownership interest in 245 Park Avenue,” the agency said in a statement.

Moody’s noted the REIT’s leverage stood at 15.2x for the trailing 12 months ending March 31.

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