S&P Eyes Chateau Ratings

The BBB-minus ratings of Chateau Communities Inc., Greenwood Village, Colo., and a subsidiary have been placed on CreditWatch with negative implications by Standard & Poor's.S&P said the actions were related to the announcement that Hometown America LLC, a privately-held Chicago-based owner and operator of manufactured housing communities, has agreed to acquire Chateau, a real estate investment trust that is the largest owner/operator of MH communities in the United States. "The lack of information regarding Hometown America aside, Chateau's ratings would likely be lowered below investment-grade based on the significant challenges that any smaller company would have integrating Chateau's sizable portfolio," the rating agency said. The CreditWatch placement also affects CP LP, a Chateau subsidiary. S&P can be found online at http://www.standardandpoors.com.