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S&P Puts Vornado on Negative CreditWatch

NEW YORK CITY-The move was prompted by Vornado's successful $3.25-billion bid for the World Trade Center last week. Uncertainties about the financing of the deal and the size of the complex compared to the firm's current portfolio were factors in the decision.

By John Howe | Updated on February 26, 2001

NEW YORK CITY-The selection last week of Vornado Realty trust to negotiate a 99-year lease for the World trade Center by the Port Authority of New York and New Jersey ended months of speculation as to who would manage the property. Vornado’s bid of $3.25 billion beat out its four competitors, Boston Properties, Brookfield Properties and Silverstein Properties.

In the wake of that success and as a result of it, however Standard & Poor’s has placed Vornado Realty Trust and Vornado Realty LP on CreditWatch with negative implications. Securities valued at $450 million are affected. Uncertainties about how the deal will be financed and the formidable challenges involved in managing the complex were cited by S&P as factors in its decision.

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