Moody's Downgrades Reckson Debt

The senior unsecured debt rating of Reckson Operating Partnership LP has been downgraded from Baa3 to Ba1 by Moody's Investors Service in the wake of SL Green Realty Corp.'s acquisition of Reckson Associates Realty Corp.The rating remains under review for possible downgrade. Moody's said Reckson's bondholders "are in a weaker position" after the closing because the transaction results in greater leverage and asset concentration. "Moody's does not expect near-term changes in SL Green's current capital strategy, which utilizes high levels of secured debt, total effective leverage, and joint venture funding," the rating agency said. "Reckson's ratings were downgraded as a result of the geographic, asset, and tenant concentrations within the combined portfolio." Moody's can be found online at http://www.moodys.com.