Subject: Re: S&P weighs cutting BPG to junk
To add more details from Substack (Keith Dalrymple):

"The other interesting aspect of the S&P note was the way in which it discussed what looks like financial distress. BPY does not report defaulted debt. As S&P states, BPY has 'suspended payment' on 3% of debt. Brookfield does not define what debt. Using total consolidated debt of $67.6B yields to defaults of around $2B. With respect to suspended debt payments, the notes says 'we view this as a portfolio management exercise, not a default'.

The article also highlights this S&P report excerpt: "A notable portion of the deterioration was caused by the consolidation of one of its funds' (BSREP IV) U.S. investments in December 2022 and foreign investments in January 2023, which added a material amount of new debt to BPY while EBITDA had not fully cycled through on our training 12 month adjusted metrics."


https://brookfield.substack.co...

Sam