Moody's rates Redefine Properties Baa3

Moody's Investors Service said it assigned long-term and short-term issuer ratings of Baa3 and prime-3 to Redefine Properties Ltd., along with long-term and short-term national scale ratings of A3.za and prime-2.za.

The outlook is stable.

The ratings are underpinned by the company's large portfolio of predominantly South African properties with a good occupancy rate that produces very high EBITDA margins with relatively low volatility compared to its global peers, Moody's said.

The company has developed a diversified offshore property exposure via its 54%-owned listed subsidiary Redefine Properties International Ltd. with property investments in the United Kingdom, Germany, Switzerland and Australia, the agency said.

The key ratings constraint is the large proportion of secured debt in the company's capital structure, Moody's said, and the small percentage of assets that are currently unencumbered.

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