The senior subordinated and senior unsecured debt of LNR Property Corp., Miami Beach, Fla., have been downgraded by Fitch Ratings and removed from Rating Watch Evolving.The senior subordinated debt rating was lowered from BB-minus to B-minus, and the senior unsecured debt rating was lowered from BB-plus to B. The rating outlook is stable, Fitch said. The rating actions are based on the expectation that "there will be meaningful changes in LNR's leverage, capitalization, funding, and liquidity profile" as a result of the acquisition of the real estate investment company by Cerberus Capital Management LP, the rating agency said. "The terms of the company's planned credit facilities will encumber all existing available unencumbered assets and cash flows," Fitch said. "While the market value of LNR's total asset base will be meaningfully in excess of the company's total indebtedness, all available assets will effectively be used to secure funding." Fitch can be found online at http://www.fitchratings.com.
