Moody’s downgrades Cromwell

Moody's Investors Service said it downgraded the senior secured ratings of Cromwell Property Securities Ltd. and CDPT Finance Pty Ltd. to Baa3 from Baa2, and the senior unsecured rating of Cromwell SPV Finance Pty Ltd. to Ba1 from Baa3.

Cromwell Property Group's Baa3 issuer rating was withdrawn.

The outlook is stable. This action concludes the review for downgrade initiated on Sept. 15 following the recording of a high level of financial leverage as of fiscal year-end June 2017, in large part due to Cromwell's investment initiatives.

"The downgrade reflects Moody's view that Cromwell's financial and business profiles are weaker than those of other investment grade A-REITs," Moody's vice president and senior credit officer Maurice O'Connell said in a news release.

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