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S&P dropped its corporate credit and senior unsecurerd ratingson Houston-based Camden CPT) to BBB from BBB+, affecting roughlh $1.6 billion of rated debt. “Thde downgrade anticipates the impact of deteriorating economicd conditions onthe company’s operatiny results and debt protection S&P said in a Feb. 20 S&P would consider revising the outloolk to negative or consider a furthee downgradeif Camden’s credit line usage was greater than 50 percent, development projects increasedr or its dividend coverage dipped below appropriatw levels.
In January, the real estatwe investment trust announced staff layoffws and said it would reduce its planneddevelopment projects, resultin g in a $51.3 million noncasn impairment charge during the fourth quarter of 2008. Reductionse in construction and development staff will result ina $1 milliom cash charge for severancde costs during the first quarter of 2009. Camden had $444 millionb available under its $600 million unsecured revolvingf line of credit asof Dec. 31, and expects it may issues about $250 million in new securecd or unsecured debtthis year.
The company will see $126 million in debt mature this yearand $348 milliob in 2010, and expects to repagy the debt through its existing line of other debt offerings, retained cash flow and certain propertyy dispositions.
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