S&P Global Ratings downgraded CBL & Associates Properties Inc.'s issuer credit rating to B+ from BB- and maintained its negative outlook on the company.
The issue-level ratings on CBL's unsecured debt were also lowered to BB- from BB, with the recovery rating unchanged at 2.
Ratings said the regional mall real estate investment trust continues to face headwinds, including a challenging operating environment and uncertainty in access to capital. These factors, combined with CBL's settlement of a lawsuit and a potential activist investor pressure, could hamper the company's efforts to achieve its operating targets, the rating agency noted.
Ratings added that it remains uncertain whether CBL will be able to refinance ahead of a significant debt maturity comprising unsecured notes due December 2023.
The negative outlook reflects Ratings' expectation that absent a significant slowdown in store closures and bankruptcies, CBL will continue to face challenges re-tenanting its malls, which will weigh on its operating and financial performance.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.
