QuoteNEW YORK - Fitch Ratings downgraded General Growth Properties Inc.'s credit ratings Tuesday, saying default may be imminent.
Among its holdings, the Chicago-based company owns Altamonte Mall, West Oaks Mall in Ocoee, Oviedo Marketplace, Festival Bay Mall in south Orlando, and Lakeland Square, as well as 11 other centers across Florida.
Fitch noted General Growth's recent move to extend the amount of time it has to repay debt, and said it thinks the company may need to restructure its debt to avoid bankruptcy.
Fitch also said conditions in real-estate debt capital markets are hurting General Growth's ability to raise money to repay about $600 million in 2009 maturing unsecured debt.
As one of the nation's largest shopping-mall owners, General Growth has been hit hard by the deteriorating U.S. economy and problems at struggling retailers. It also has taken on massive amounts of debt -- last month in a regulatory filing, General Growth said nearly $3.1 billion worth of debt will come due next year.
http://www.orlandosentinel.com/business/orl-mallowner1008dec10,0,4496733.story
At this point, a foreclosure on Regency would probably improve the place. Hopefully it would be purchased by a new owner with deeper pockets who would focus on improving the place.
On a related note, the mall looks crummy but that Dillards discount store has some great deals, like $700 suits for half off and other items even more deeply discounted. I recommend it during daylight hours. ;)