S&P Global Ratings recently placed Brookfield Property Partners on credit watch and the result could be a reassignment to a speculative grade credit rating, meaning its bonds would be considered junk category.

"Brookfield Property Partners L.P.'s (BPY) fixed-charge coverage deteriorated to below 1.0x in the second quarter of 2023, and we don't forecast material near-term improvement given our economists' view that interest rates will remain higher for longer," S&P wrote. "The company also faces heightened refinancing risk, with a capital structure that has significant maturities over the next two years and outsized exposure to floating-rate debt."

"Brookfield Property Partners, through Brookfield Property Partners L.P. and its subsidiary Brookfield Property REIT Inc., is one of the world's premier real estate companies," according to S&P Global Market Intelligence, which lists the company's total assets at $130 billion.