Research Update: Office Properties Income Trust Downgraded To 'CCC' On Near-Term Refinancing Risk, Outlook Negative

There is significant uncertainty surrounding Office Properties Income Trust's (OPI) refinancing options and ability to raise capital to repay its upcoming debt maturities due in the next 12 months. We expect ongoing secular headwinds and material lease expirations will continue to pressure the company's operating performance and key credit metrics over the near term and for access to capital to remain constrained. Therefore, we lowered our issuer credit rating on OPI to 'CCC' from 'CCC+' and removed all of our ratings from CreditWatch, where we placed them with negative implications on Dec. 5, 2023. At the same time, we lowered our issue-level rating on the company's senior unsecured notes to 'CCC' from 'CCC+'. The '3' recovery rating is unchanged. The

...- There is significant uncertainty surrounding Office Properties Income Trust's (OPI) refinancing options and ability to raise capital to repay its upcoming debt maturities due in the next 12 months. - We expect ongoing secular headwinds and material lease expirations will continue to pressure the company's operating performance and key credit metrics over the near term and for access to capital to remain constrained. - Therefore, we lowered our issuer credit rating on OPI to '###' from '###+' and removed all of our ratings from CreditWatch, where we placed them with negative implications on Dec. 5, 2023. - At the same time, we lowered our issue-level rating on the company's senior unsecured notes to '###' from '###+'. The '3' recovery rating is unchanged. - The negative outlook reflects that OPI continues to face liquidity pressure and refinancing risk due to its material debt maturities over the new few years. The outlook also reflects our expectation that the company's operating performance...

Research Update