Moody's Downgrades Sun

The ratings of Sun Communities Inc. and its operating partnership, Sun Communities Operating LP, have been lowered by Moody's Investors Service and withdrawn.Sun's preferred stock shelf was downgraded from (P)Ba1 to (P)Ba2, and the ratings of Sun Communities Operating LP were downgraded as follows: senior unsecured debt, from Baa3 to Ba1; senior unsecured debt shelf, from (P)Baa3 to (P)Ba1; and subordinate debt shelf, from (P)Ba1 to (P)Ba2. Moody's attributed the actions to management's decision to change the capital structure of the real estate investment trust to rely primarily on secured debt financing with high leverage, and to Sun's recent successful tender of practically all its outstanding unsecured debt. Southfield, Mich.-based Sun owns and operates a portfolio of 127 manufactured housing communities, mainly in the Midwest and the Southeast.