S&P revises SITE outlook to negative

S&P said it revised its outlook for SITE Centers Corp. to negative from stable and affirmed all its ratings, including the BBB- issue-level rating on its unsecured notes, and BB issue-level rating on its preferred stock.

SITE. plans to spin off its convenience assets, valued at more than $1 billion, and complete material asset dispositions over the next year, resulting in a considerable reduction in scale post-spin. It also plans to use the asset sale proceeds, along with a draw from a newly established mortgage facility, to redeem all of its outstanding unsecured notes ahead of the spinoff.

SITE's scale will likely decline to about $3.5 billion in 2025, after it completes the transaction, from $5.5 billion in the second quarter of 2023, the agency said.

“The negative outlook reflects the significant uncertainty around SITE Centers' portfolio, balance sheet, and capital structure pro forma for the unsecured debt repayment and spin-off transaction. If the company finances a greater portion of the unsecured debt redemption with secured debt, rather than asset sale proceeds, we would likely view its balance sheet and capital structure less favorably,” S&P said in a press release.

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