S&P Lowers Ratings on Associated Estates

Standard & Poor's has lowered its corporate credit rating on Associated Estates Realty Corp., a real estate investment trust based in Richmond Heights, Ohio, from BB-minus to B-plus.In addition, the rating on the REIT's preferred stock was lowered from B-minus to CCC-plus. The rating outlook remains negative. S&P attributed the downgrades to deterioration at the property level that has weakened the REIT's cash flow and "already low" coverage measures. "The negative outlook remains in place due to the persistent challenges the company faces in its portfolio and markets," said S&P analyst George Skoufis. "However, the company's current ratings do acknowledge a very manageable near-term debt maturity schedule and largely fixed-rate capital structure." The rating agency can be found online at http://www.standardandpoors.com.