S&P cuts Brookfield Office debt

Standard & Poor's said it lowered its corporate credit rating on Brookfield Office Properties Inc. and its subsidiary, Brookfield Office Properties Canada, to BBB- from BBB.

The outlook is stable.

The agency also lowered its rating on the company's senior unsecured debt rating to BB+ from BBB- and the preferred rating to BB/P-3 from BB+/P-3(high).

The action affects roughly C$2.7 billion of securities.

"The downgrade reflects our view that the company's financial profile will remain weak over the next two years due to the pending large vacancy at Brookfield Place New York and uncertainty regarding the company's commitment to strengthening fixed-charge coverage and debt-to-EBITDA metrics longer term, given the potential for meaningful development pursuits and/or other largely debt-financed growth," S&P credit analyst Elizabeth Campbell said in a news release.

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