S&P drops Centro to distressed

Standard & Poor's said it lowered the issuer credit rating on Centro NP LLC to CCC+ from BB+. S&P also downgraded Centro NP's senior unsecured debt rating to CCC+ from BB+ and preferred stock rating to CCC- from BB-. The company was formerly New Plan Excel Realty Property Trust.

All ratings were placed on CreditWatch with developing implications and removed from CreditWatch with negative implications, where they were initially placed on Dec. 13.

The downgrades reflect the potential for the group's assets to be sold in softening market conditions, amendments to Centro NP's revolving credit facility on Dec. 18 and the Feb. 15 deadline for rollover of substantial debt facilities at Centro Properties Group.

The downgrades also follow the announcement that the group is seeking expressions of interest for a review, including a recapitalization, equity issuance or acquisition of Centro or the acquisition of the group's interest in its Australian and U.S. wholesale funds.

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