Biggest Mall in N.Y. Has Debt Rating Cut Again on Creditor Talks

Destiny USA, the biggest shopping mall in New York, had the ratings on $285 million of municipal bonds cut deeper into junk by Moody’s Investors Service after its owner hired restructuring advisers and began talks with creditors.

Moody’s cut the rating on the bonds to expand Pyramid Management Group’s, Carousel Center mall into a super-regional shopping complex to Caa1 from B3, seven steps below investment grade. Occupancy at the Syracuse mall, which was struggling before the pandemic, has plunged below 60%. The estimated value of the older portion of the mall that backs the bonds has declined to $118 ...