Fitch cuts Mack-Cali

Fitch Ratings said it downgraded the long-term issuer default ratings for Mack-Cali Realty Corp. and its operating subsidiary Mack-Cali Realty, LP to B from BB-.

“Mack-Cali's IDR reflects the company's persistently high and increased leverage, weak liquidity coverage, aggressive development program, limited unsecured debt and equity capital access and moderate complexity from joint venture (JV) investments, which also limit the company's strategic and operational control and reduce financial reporting transparency,” the agency said in a press release.

“Fitch expects Mack-Cali's leverage will remain elevated and increase to around 14x-15x in our one- to two-year forecast horizon, while moderately decreasing thereafter but remaining above 12x in 2024,” Fitch said.

The outlook is negative.

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