TEXT-S&P lowers Plaza Centers N.V. rating to 'B-';put on watch neg

Dec 27 - Overview -- The Netherlands-based company Plaza Centers N.V.'s liquidity has deteriorated to a level we regard as "weak", and is under pressure owing to the weak liquidity of major shareholder, Elbit Imaging. -- The company's decision to delay asset sales has lessened its financial flexibility, which depends highly on the proceeds from such sales. -- We are therefore lowering our long-term corporate credit rating on Plaza Centers to 'B-' from 'B', and placing it on CreditWatch negative. -- We aim to resolve the CreditWatch after closely monitoring developments at Elbit Imaging, and the size and timing of Plaza Centers' dividends, should there be any. Rating Action On Dec. 27, 2012, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on The Netherlands-based real estate(or shopping mall developer)company, Plaza Centers N.V., to 'B-' from 'B', and at the same time placed the rating on CreditWatch with negative implications. Rationale The downgrade and CreditWatch placement reflects our view that Plaza Centers' liquidity has deteriorated to a level we view as "weak" under our criteria. We also factor in the reduction in Plaza Centers' financial flexibility, which depends highly on proceeds from asset sales, and the increasing threat to the company's business risk profile and liquidity from its major shareholder, Elbit Imaging, which we regard as vulnerable to non-payment over the next 12 months.