TCO - Simon Property stock falls 5.1% after Fitch downgraded to A-

Simon Property Group (SPG) drops 5.1% after Fitch Ratings cuts the shopping mall operator's credit ratings to A- from A, citing its view that SPG's credit metric will remain weak due to the stress on its tenant roster and the majority debt-funded acquisition of Taubman Centers ([[TCO]] +0.1%).SPG's credit rating is still near the top of the investment-grade range; ratings outlook is negative."The combination of these factors is expected to result in leverage that rises to the mid-6x range and sustains in the low- to mid-6x range through the forecast period," Fitch said in its statement.See SPG's long-term debt over the past 11 quarters, but the impact of the merger won't show up until Q4 2020 or early 2021 when the TCO deal closes:Fitch sees continued cash flow pressure due to accelerating store closures, retailer bankruptcies, secular trends shifting tenant demand to real estate with street-facing properties or open-air centers, and reduced

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Simon Property stock falls 5.1% after Fitch downgraded to A-