Brookfield Property Partners’ credit rating has been cut to BB from BBB- by S&P Global Ratings, putting it in junk territory. It has also received a negative outlook.
The company is facing upcoming debt maturities, with about $2.3B due by 2025, Bloomberg reports, citing S&P, and there is a 1 in 3 chance of a further downgrade over next 12 months if Brookfield Property is unable to refinance its maturing debt or there is further softening in office occupancy.
The downgrade doesn’t apply to parent company Brookfield Corp., which retains its investment-grade rating of BBB.
“We expect sector headwinds facing commercial office real estate…