« Forest City's debt rating cut | Main | Number 10: Daniel Goldstein »
October 24, 2008
As Forest City's stock price drops another 40%, rating agency expresses concern, including about AY
Atlantic Yards Report
Norman Oder follows up on Standard & Poor's downgrade of Forest City debt.
Less than two weeks ago, Forest City Enterprises (FCE), parent company of Atlantic Yards developer Forest City Ratner, saw its stock price close at $19.79, less than a dollar over the low point of its 52-week range. (Five-year chart at right from Oct. 11 post.)
...Now the stock has declined nearly 40%, to $11.91--note that the lowest level of the chart at right, as opposed to the one at top, is $10.
At the same time, rating company Standard & Poor's has cut Forest City's credit rating, citing "concerns about Forest City's debt load and the company's ambitious development plans in a weak economy," according to the Cleveland Plain Dealer.
"Standard & Poor's analysts expressed concern about projects including Forest City's high-profile and controversial Atlantic Yards development in Brooklyn," the newspaper noted. The AP added, "S&P lowered Forest City's corporate credit rating and its rating on senior unsecured notes further into junk, or non-investment grade, status."
NoLandGrab: Click here for a current Forest City Enterprises stock quote.
Cleveland Plain Dealer, Forest City reassures investors after ratings cut
Forest City Enterprises said it can manage its debt and increase its liquidity after Standard & Poor's Rating Services cut the company's credit ratings.
The real estate developer, based in Cleveland, released a statement Thursday after Standard & Poor's reduced ratings on Forest City's corporate credit and senior unsecured notes.The ratings agency lowered its ratings based on concerns about Forest City's debt load and the company's ambitious development plans in a weak economy.
Posted by eric at October 24, 2008 11:12 AM