Canary Wharf Debt Downgrade Is Sign of Wider Property Woes
- Owner of east London financial district has debt coming due
- Investors cautious on real estate, leading to large discounts
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Canary Wharf became the latest symbol of the global real estate downturn, with Moody’s downgrading the debt of the landlord and forecasting a challenging funding environment for at least the next year.
The east London financial district, home to the skyscrapers of HSBC Holdings Plc and Barclays Plc, was cut deeper into junk, from Ba1 to Ba3. Canary Wharf Investment Holdings Plc may need to rely on asset sales to repay borrowings or inject fresh capital into the business, the ratings company said.