S&P cuts Washington Prime

S&P said it downgraded Washington Prime Group Inc. to CCC+ from BB- and lowered the ratings on the unsecured debt to B- from BB and the preferred stock rating to CC from B-. The 2 recovery rating on the debt is unchanged.

“The downgrade reflects our view that Washington Prime is at risk for a covenant breach in the second quarter of 2020. While we acknowledge there is still much uncertainty surrounding the duration of coronavirus' impact on the U.S., we believe that its effect on WPG's challenged B malls – which were already undergoing a continued secular decline – will prove highly unfavorable,” said S&P in a press release.

The outlook is negative.

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