S&P Global Ratings affirmed its corporate credit rating on Mack-Cali Realty Corp. at BB+ and its issue-level ratings on the company's unsecured notes at BBB-.
The outlook remains negative.
The company is making a consistent and steady advancement in repositioning its core office portfolio and expanding its multifamily segment, which is reflected in the ratings action, S&P noted.
However, the rating agency added that the company's ability to meet its leverage expectation of 8.5x by 2017-end may be pressured by the slower than expected rate of dispositions.
The negative outlook mirrors the company's raised financial leverage, and the challenging operating trends it faces in its core suburban office portfolio.