Research Update: Australian Prime Property Fund Retail 'A-/A-2' Ratings Affirmed; Outlook Remains Negative

Australian Prime Property Fund Retail's (APPF Retail) credit quality is under pressure as it seeks to satisfy unitholder redemptions on a best-endeavors basis. We view the fund manager's decision to retain its 50% share in Westfield Carindale and progress its strategy of developing core assets as supportive of the 'A-' rating. We expect that, post expiry of the redemption request, the fund's asset portfolio will be located in population growth corridors that will continue to underpin its competitive position. Over the near term, we expect the fund will pursue a number of strategies that will balance the interests of its debt and equity holders. This could include the sale of noncore assets, securing new equity, or other capital raisings such

...- Australian Prime Property Fund Retail's (APPF Retail) credit quality is under pressure as it seeks to satisfy unitholder redemptions on a best-endeavors basis. We view the fund manager's decision to retain its 50% share in Westfield Carindale and progress its strategy of developing core assets as supportive of the 'A-' rating. We expect that, post expiry of the redemption request, the fund's asset portfolio will be located in population growth corridors that will continue to underpin its competitive position. - Over the near term, we expect the fund will pursue a number of strategies that will balance the interests of its debt and equity holders. This could include the sale of noncore assets, securing new equity, or other capital raisings such that the fund's credit metrics remain consistent with the 'A-' rating. - On Oct. 11, 2021, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating and 'A-2' short-term issuer credit rating on APPF Retail. We also affirmed our 'A-' issue...

Research Update