Moody's rates Washington Prime, loan B3

Moody's Investors Service said it assigned new ratings to Washington Prime Group LLC, including a B3 corporate family rating, a B3 on the $1.262 billion of four-year senior secured debt and a speculative grade liquidity rating of SGL-4.

“WPG's B3 rating reflects an improved balance sheet, allowing the company to increase its focus on redevelopment and leasing operations. The recapitalization removes WPG's near-term financing risk, with no debt maturities until 2025 when its $1.262 billion senior secured debt contractually matures. This provides WPG with a runway to execute its business plan of redeveloping former department stores and transforming its properties into more vibrant and active retail assets,” Moody’s said in a press release.

The company used $1.262 billion to finance its exit from bankruptcy under the plan of reorganization that was approved on Oct. 21.

The outlook is stable. “The outlook also anticipates that net debt plus preferred to EBITDA ratio will decline modestly from peak levels, over the course of 2022 and settles well below 8x, while the company has no liquidity challenges,” the agency said.

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