Warner credit watch
Ty Warner, Montecito resident and luxury hotel magnate, may be in danger of defaulting on debt and faces a potential ratings agency downgrade on $425 million debt backed buy four resorts, including Four Seasons in New York, according to Bloomberg News.
Standard & Poor’s placed Warner’s debt on “credit watch with negative implications” after net cash flow from the properties fell 46 percent below S&P’s expectations, Bloomberg reported.
Warner’s loan, held by Ty Warner Hotels, matures in 2010 and has one 12-month extension option remaining, the agency reported.
