Moody’s upgrades Growthpoint

Moody's Investors Service said it upgraded Growthpoint Properties Ltd.’s global scale issuer and senior unsecured ratings to Baa2/P-2 from Baa3/P-3, national scale issuer ratings to A1.za/P-1.za from A2.za/P-2.za and national scale senior unsecured medium-term note program ratings to provisional A1.za/provisional P-1.za from provisional A2.za/provisional P-2.za.

All outlooks were changed to stable from positive.

"The upgrade recognizes Growthpoint's sizable property portfolio of around ZAR 95 billion (post its Acucap Properties Ltd./Sycom Property Fund acquisition), track record of sound liquidity management and strong financial metrics combined with the expectation that Growthpoint intends to maintain group leverage levels (as measured by total debt to gross property assets) below 40%," Moody’s vice president and senior analyst Dion Bate said in a news release.

As of the last 12 months to Dec. 31, total debt to gross assets of 29.3% was well below the agency’s upward guidance levels of 40%, with fixed charge cover of 3 times (as measured by EBITDA to interest expense) remaining above the guidance level of 2.7 times for upward rating pressure. All credit metrics mentioned in this press release are as per Moody's standard adjustments.

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