Moody's, Fitch Eye Heritage Ratings

The ratings of Heritage Property Investment Trust Inc. have been placed under review for possible downgrade by Moody's Investors Service and Fitch Ratings following Heritage's announced sale to affiliates of Centro Properties Group.The affected Moody's ratings are as follows: senior unsecured notes, now at Baa3; senior unsecured shelf, at (P)Baa3; subordinated shelf, at (P)Ba1; preferred stock shelf, at (P)Ba1; and Bradley Operating LP, senior unsecured debt, at Baa3. Moody's said that, although the precise capital structure of Heritage after the transaction is not clear, leverage (especially secured leverage) may increase and other credit metrics may deteriorate as well. The affected Fitch ratings, all now at BBB-minus and on Rating Watch Negative, are: senior unsecured debt; senior unsecured line of credit and bridge loan; long-term issuer rating; Bradley Operating LP senior notes; and Bradley Operating long-term issuer rating. Fitch said the factors involved in its review are: the change in access to capital (since the acquiring venture will not have access to the U.S. public markets); an expected increase in leverage; and the venture's plans to fund the transaction with secured financing. The rating agencies can be found online at http://www.moodys.com and http://www.fitchratings.com.