{"id":5730,"date":"2014-12-16T00:00:00","date_gmt":"2014-12-16T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/12\/moodys_reduces_american_realty"},"modified":"2022-03-11T13:34:15","modified_gmt":"2022-03-11T19:34:15","slug":"moodys-reduces-american-realty","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/moodys-reduces-american-realty\/","title":{"rendered":"Moody\u2019s Reduces American Realty Capital Properties Credit Rating to Junk Status, REIT\u2019s Founder Nicholas Schorsch Steps Down"},"content":{"rendered":"\n

American Realty Capital Properties\u2019 (ARCP) credit rating was just downgraded to junk status by Moody\u2019s Investors Service (MCO). The credit rater is now rating the real estate investment trust with a Ba1, which is just under investment grade. Moody\u2019s has also given ARCP a negative outlook. The downgrade comes following this week\u2019s management shakeup at the REIT and its disclosure several weeks ago of massive accounting irregularities that were covered up. <\/p>\n

This week, American Reality Capital Properties\u2019 chairman and founder Nicholas Schorsch stepped down, as did COO Lisa Beeson and chief executive David Kay. In October, ARCP\u2019s chief accounting officer and CFO also resigned after an $23 million accounting mistake was announced.<\/p>\n

The change in management comes weeks after the REIT disclosed that it misstated financial results in 2014\u2019s first quarter and purposely concealed the error by misrepresenting second quarter results. After the REIT revealed the $23 million accounting error, a number of firms suspended trading in nontraded real estate investment trusts that were run and backed by companies under Schorsch. The firms included Fidelity, Charles Schwab (SCHW), Pershing, LPL Financial (LPLA), AIG Advisor Group, National Planning Holding, Securities America, and even Schorsch\u2019s Cetera Financial Group broker-dealer network. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

American Realty Capital Properties\u2019 (ARCP) credit rating was just downgraded to junk status by Moody\u2019s Investors Service (MCO). The credit rater is now rating the real estate investment trust with a Ba1, which is just under investment grade. Moody\u2019s has also given ARCP a negative outlook. The downgrade comes following this week\u2019s management shakeup at […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3845,3882,3759],"tags":[2814,2690,3131,3460],"class_list":["post-5730","post","type-post","status-publish","format-standard","hentry","category-credit-rating-agencies","category-moodys","category-reits","tag-arcp","tag-moodys","tag-reit","tag-schorsch"],"yoast_head":"\nMoody\u2019s Reduces American Realty Capital Properties Credit Rating to Junk Status, REIT\u2019s Founder Nicholas Schorsch Steps Down — Investor Lawyers Blog — December 16, 2014<\/title>\n<meta name=\"description\" content=\"American Realty Capital Properties\u2019 (ARCP) credit rating was just downgraded to junk status by Moody\u2019s Investors Service (MCO). The credit rater is now — December 16, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/moodys-reduces-american-realty\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Moody\u2019s Reduces American Realty Capital Properties Credit Rating to Junk Status, REIT\u2019s Founder Nicholas Schorsch Steps Down — Investor Lawyers Blog — December 16, 2014\" \/>\n<meta name=\"twitter:description\" content=\"American Realty Capital Properties\u2019 (ARCP) credit rating was just downgraded to junk status by Moody\u2019s Investors Service (MCO). 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