Outlooks On Four Australian Retail REITs Revised To Negative, One To Stable; Ratings On Eight REITs Affirmed

In our view, some Australian retail REITs have limited buffer to absorb the likely economic recession and depressed retail environment due to the COVID-19 pandemic. On April 6, 2020, S&P Global Ratings revised the outlook on four Australian retail REITs to negative from stable, and the outlook on one REIT to stable from positive. The outlooks on two other Australian retail REITs remain stable and on one other remains negative. We also affirmed the ratings on all eight retail REITs. Rating stability will increasingly depend on REITs' ability to use available financial levers, such as expenditure curtailment, reductions in cash distribution, and other sources, to offset the fallout of COVID-19-related government measures on rents, vacancies, and tenant defaults. Further, a

...+ In our view, some Australian retail REITs have limited buffer to absorb the likely economic recession and depressed retail environment due to the COVID-19 pandemic. + On April 6, 2020, S&P Global Ratings revised the outlook on four Australian retail REITs to negative from stable, and the outlook on one REIT to stable from positive. The outlooks on two other Australian retail REITs remain stable and on one other remains negative. We also affirmed the ratings on all eight retail REITs. + Rating stability will increasingly depend on REITs' ability to use available financial levers, such as expenditure curtailment, reductions in cash distribution, and other sources, to offset the fallout of COVID-19-related government measures on rents, vacancies, and tenant defaults. + Further, a continued disciplined approach to liquidity management is key to rating stability. MELBOURNE (S&P Global Ratings) April 6, 2020--S&P Global Ratings today took the rating actions listed below (see list)....

Ratings Action