Subject: Brookfield Property Partners Downgraded
27-Mar-2025
Brookfield Property Partners Downgraded On Highly Leveraged Credit Metrics; New Debt Rated; Outlook Stable
- We expect retail operating performance to remain robust in 2025.
- We expect office operating performance to gradually recover, but remain below pre-pandemic levels.
- We expect LP investments to remain an important part of BPY’s strategy.
- Despite recent deleveraging at BPR, we do not expect material improvement in credit metrics in 2025 at BPY.
- BPY’s relationship with BN (A-/stable/A-1) enhances its credit profile.
- We assigned a ‘B+’ rating with a ‘5’ recovery rating to BPR’s proposed term loan B.
- This transaction addresses the majority of 2025 recourse maturities, but liquidity pressure remains at BPY in future years.
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