Moody's Investors Service has withdrawn Forest City Enterprises, LP's (Forest City) senior unsecured debt, debt and preferred stock shelf ratings. There are no remaining ratings for any Forest City entities.Moody's cited "its own business reasons." What does that mean? According to the company's policy:
The following ratings were withdrawn
Senior Unsecured debt at B1
Senior Unsecured shelf at (P) B1
Senior Subordinate shelf at (P) B2
Junior Subordinate shelf at (P) B2
Preferred stock shelf at (P) B3
6) Business Reasons: under certain circumstances, MIS will withdraw a Credit Rating for a Rated Entity or an obligation for reasons unrelated to the situations identified above. When MIS indicates that a Credit Rating was withdrawn for “business reasons,” this refers to MIS’s business reasons, not the business reasons of the Rated Entity or obligor. MIS’s business reasons generally do not reflect any concerns about the Rated Entity’s creditworthiness or the quality of its management. MIS’s decision to withdraw a rating under these circumstances will attempt to balance the informational benefit to market participants from maintaining a Credit Rating against the resources required to maintain and monitor that Credit Rating or other business considerations.(Emphases added)
So Moody's wasn't saying Forest City's debt was bad.
But the timing does seem curious. What if the ratings firm recognized that Forest City's quarterly results would result in a drop in the stock price and commensurate interest in the company's debt, and thus made it less necessary to track that debt?