Moody's lowers MEPC

Moody's Investors Service said it lowered to B1 from Ba3 the long-term senior unsecured ratings of MEPC Ltd. and placed them on review for possible further downgrade. At the same time Moody's assigned MEPC a Ba3 senior implied rating and placed it on review for possible downgrade.

The ratings lowered and placed on review for possible downgrade include MEPC Ltd.'s ratings for senior unsecured bonds and issuer rating to B1 from Ba3 and MEPC International Capital LP's rating for guaranteed preferred securities to B3 from B2.

Moody's said the rating actions followed the decision by MEPC to adopt a secured debt financing strategy, which marks a significant change from its existing financing plans. In Moody's view this strategy shift has implications for the effective subordination of MEPC's unsecured creditors and could potentially signal a broader increase in operational or financial risk appetite.

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