S&P Lowers Outlook for Owner of Prince Kuhio, Ala Moana
**Correction: An earlier version of this article incorrectly listed the “King’s Shops at Waikoloa” as a GGP property. The King’s Shops is not owned by GGP.**
Credit rating agency Standard and Poor’s lowered the outlook today for General Growth Properties, the parent company of Big Island shopping center Prince Kuhio Mall and the Ala Moana Shopping Center on Oahu.
The ratings agency explained its more negative view of GGP was due to its still-difficult debt situation, stating in a press release “Coverage and debt-leverage measures remain relatively weak, owing to the company’s aggressive financial leverage.”
Although S&P lowered the company’s outlook, the ratings agency decided against a full credit-downgrade, and maintained GGP’s overall credit rating at ‘BB.’ Despite GGP’s ongoing financial challenges, S&P praised the company for continuing efforts at refinancing debt, and noted the mall-operator’s “improved operating performance.”
GGP is the second-largest mall owner/operator in the US, with a portfolio of 129 malls. The company also has a 41% ownership interest in 16 malls across Brazil.
General Growth Properties emerged from Chapter 11 Bankruptcy in November of 2010 after a year-and-a-half of debt restructuring.
Ala Moana Shopping Center is one of GGP’s top-performing malls. The company plans to invest over $540 million over the next two years at the Honolulu-based complex.