The AP reported:
Last month, Cleveland-based Forest City reported a second-quarter profit of $122.8 million. The results bested the company's prior-year quarter performance - a loss of $1.8 million.Wonder if Moody's factored in an expected $249 million in immigrant investor funding, at low or no interest?
Moody's noted Forest City has been addressing its mortgage debt maturities, refinanced its credit facility and significantly reduced its development exposure.
Morningstar, by the way, is a bit more cautious:
While we like Forest City's use of nonrecourse property debt and its geographically diverse footprint, we believe its extensive exposure to the volatile retail industry as well as its high degree of financial leverage warrant an extreme fair value uncertainty rating.