Brookfield Property Risks Being Cut to Junk on Refinancing Needs
- S&P is likely to make a decision in the next three months
- Commercial property prices have fallen as Fed raised rates
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S&P Global Ratings said it is considering cutting Brookfield Property Partners to junk status because the commercial property company has “substantial” amounts of maturing debt to refinance during a time of higher interest rates and lower property values.
The commercial property unit of Brookfield Corp., the Canadian alternative asset manager, mostly owns high-quality office properties in major US cities and class-A malls. The value of these types of properties has dropped since the pandemic, according to real estate analytics firm Green Street.