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The shareholders wealth effects associated with property transactions have been excessively studied in prior literature, while debt holders benefits have been neglected.As a general proxy that can represent all the debt stakeholders interests, corporate credit ratings serve as an important role in attenuate the potential agency conflict between debt stakeholders and management.It is important for managers to know how property management can affect firms credit rating levels.In this paper we investigate whether and how property dispositions affect Real Estate Investment Trust (REIT)credit ratings level.We propose three possible mechanisms (Proceeds Utilization, EfficientAsset Allocation, and Focus)that link real estate asset divestitures to the two main rating criteria as suggested by rating agency, Business Position assessment and Financial Risk profile.Utilizing annual data of all the US REITs with ratings assigned by S&Ps, our empirical results show that property dispositions do have a positive effect on REIT corporate credit ratings.We also find that the effects of dispositions can be largely explained byincrease of proceeds to FFO and reduction of property type diversity.Our results are robust when we only include REITs with rating transitions and when we consider the time lag between new information and rating agencies reaction.