S&P Places CBL & Assoc. Properties (CBL) on CreditWatch Negative; Ratings Affirmed
Global Ratings placed its ratings, including the 'BBB-' corporate credit rating, on CBL & Associates Properties Inc. (NYSE: CBL), on CreditWatch with negative implications.
"The CreditWatch action, in our opinion, reflects the lack of a definitive resolution to the recent allegations. As a result, we think CBL faces some reputational uncertainty from the accounting allegations that could impair their access to the capital markets or make negotiations of their planned dispositions difficult," said credit analyst Kristina Koltunicki.
We expect to resolve the CreditWatch placement within 90 days if the company releases further definitive information. We could lower the ratings if this situation led to a weakened ability to access capital markets, meet upcoming maturities, impaired its ability to dispose of assets, or led to slower-than-expected progress in improving the company's portfolio and delayed improvement in debt leverage and an unencumbered asset base, versus our expectations. Additional risks associated with these allegations could also lead to restatements of its historical financials and a potential breach of covenants.