Moody's Downgrades Equity Office

The senior unsecured debt of EOP Operating LP and Spieker Properties LP, affiliates of Equity Office Properties Trust, have been downgraded from Baa2 to Ba3 by Moody's Investors Service in the wake of the acquisition of Equity Office by The Blackstone Group.In addition, the preferred stock rating of the Chicago-based Equity Office was downgraded from Baa3 to B2. Moody's said it will withdraw all the REIT's ratings. The debt downgrade "reflects the more aggressive capital strategy that will be employed by The Blackstone Group," the rating agency said. "Leverage is expected to rise to almost 80% of total assets, most of which is expected to be secured." Moody's said the ratings of Equity Office and its affiliates are being withdrawn because it does not expect adequate information to be available to continue monitoring them. Moody's can be found online at http://www.moodys.com.