This article is from the Australian Property Journal archive
RATINGS agency Standard & Poor’s Ratings Services has revised its rating outlook on the Lend Lease managed Australian Prime Property Fund Retail to positive, from stable.
At the same time, S&P has affirmed its ‘A/A-1’ ratings on APPF Retail and the fund’s related debt issues and programs, following the recent completion of a $A500 million equity raising.
APPF Retail has a robust future development pipeline of more than $1 billion over the next five years.
S&P credit analyst Jennifer Wee said the long-term rating on APPF Retail could be raised if the fund accomplished its investment objectives whilst managing gearing at its target range of 10%-15%.
“The ratings on APPF Retail reflect our opinion of the fund’s conservative financial policies, strong liquidity, and high-quality and well-diversified Australian shopping-center portfolio. These strengths offset the risks associated with the fund’s ongoing capital-expenditure requirements for development projects and exposure to cyclical discretionary spending,” she concluded.
Australian Property Journal
