It's official - General Growth debt rates as 'junk'

Promenade developer faces billions in debt

On Friday, General Growth Properties (GGP) bonds were lowered over concerns that the Chicago-based mall developer will not be able to meet debt obligations, some of which are due later this month.

Moody's Investors Services lowered GGP's bonds rating to Caa2, meaning the bonds are not investment grade, or more commonly known as 'junk.'

The lowering of the bonds to junk status makes refinancing more difficult for GGP as it's cost of credit, if it were to acquire it, would be substantially greater.

GGP is the developer of the Elk Grove Promenade in Elk Grove, whose construction has been halted for several months.