Forest City Comments on Standard & Poor's Rating Action

CLEVELAND, Oct. 23 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc.
(NYSE: FCEA and FCEB) commented today on action taken by Standard & Poor's
Rating Services (S&P). S&P lowered its corporate credit rating for Forest
City to BB from BB+, and lowered its rating on the Company's senior unsecured
notes to B+ from BB-. In response, Forest City President and Chief Executive
Officer Charles A. Ratner issued the following statement:
"We interpret this action in light of the macroeconomic factors impacting
nearly every sector of the economy, including real estate. These are clearly
difficult times, given the condition of capital and credit markets.
Nevertheless, we believe Forest City and its management team are fully capable
of navigating the current environment. We have already taken a number of
steps to enhance liquidity and we continue to effectively manage debt
maturities for the balance of 2008 and 2009. We have also demonstrated
repeatedly in recent months that we continue to have access to non-recourse
financing to fund our development pipeline projects.
"Forest City has weathered many downturns and real estate cycles over
80-plus years in business and more than four decades as a public company. Our
skilled, long-tenured management team has a track record of performance and
demonstrated ability to consistently create value, even in challenging times.
We have responded to current market and industry conditions with prudent,
assertive actions that put us in a strong position for the future.
"Further, we still believe that current conditions create opportunity for
Forest City, given market dislocations, and we intend to selectively and
strategically take advantage of such opportunities. We are confident that
over time, we will return to the growth path that has characterized Forest
City for decades."
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About Forest City
Forest City Enterprises, Inc. is a $10.9 billion NYSE-listed national real
estate company. The Company is principally engaged in the ownership,
development, management and acquisition of commercial and residential real
estate and land throughout the United States.
Safe Harbor Language
Statements made in this news release that state the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are forward-looking statements. The Company's actual results could
differ materially from those expressed or implied in such forward-looking
statements due to various risks, uncertainties and other factors. Risks and
factors that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, general real
estate development and investment risks including lack of satisfactory
financing, construction and lease-up delays and cost overruns, dependence on
rental income from real property, reliance on major tenants, the effect of
economic and market conditions on a nationwide basis as well as in our primary
markets, vacancies in our properties, downturns in the housing market,
competition, illiquidity of real estate investments, bankruptcy or defaults of
tenants, department store consolidations, international activities, the impact
of terrorist acts, risks associated with an investment in and operation of a
professional sports team, conflicts of interests, our substantial debt
leverage and the ability to obtain and service debt, the impact of
restrictions imposed by our credit facility, the level and volatility of
interest rates, the continued availability of tax-exempt government financing,
effects of uninsured or underinsured losses, environmental liabilities, risks
associated with developing and managing properties in partnership with others,
the ability to maintain effective internal controls, compliance with
governmental regulations, changes in market conditions, litigation risks, and
other risk factors as disclosed from time to time in the Company's SEC
filings, including but not limited to, the Company's annual and quarterly
reports.
SOURCE Forest City Enterprises, Inc.

Robert O'Brien, Executive Vice President, Chief Financial Officer; Thomas
Kmiecik, Assistant Treasurer; or Jeff Linton, Vice President, Corporate
Communication, all of Forest City Enterprises, Inc., +1-216-621-6060