The senior unsecured ratings of The Rouse Co. and Price Development Co. LP have been lowered from Baa3 to Ba1 by Moody's Investors Service, and the unsecured debt shelf rating of General Growth Properties has been lowered from (P)Ba1 to (P)Ba2.The rating outlooks are stable. The downgrades followed the announcement that the Chicago-based GGP had completed its acquisition of Rouse. Moody's attributed the downgrades to "aggressive financing of the Rouse acquisition by General Growth." The rating agency said the one-notch rating differential between the senior debt ratings of Rouse and Price Development, and those of GGP, reflect "differential financial leverage, and structural protections."
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