Moody's cuts SL Green

Moody's Investors Service said it downgraded SL Green Operating Partnership, LP's senior unsecured debt rating to Ba1 from Baa3 due to the expectation that leverage metrics will remain high despite income growth, and the strategy of using asset sales proceeds to buy back stock will continue.

The agency also lowered parent SL Green Realty Corp.'s preferred stock rating to Ba3 from Ba1, consistent with the notching guidelines for REIT issuers, and a corporate family rating of Ba1 was assigned. Moody's also assigned a speculative grade liquidity rating of SGL-2 to SL Green Operating Partnership and revised the outlook to stable from negative.

“The stable rating outlook reflects SL Green's high quality portfolio, its predictable cash flows and proven access to multiple sources of capital,” Moody’s said in a press release.

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