APPF Retail's portfolio of retail assets remains strong and stable. Planned debt funding of major developments over the next three years could see the fund's gearing move to just above 15%. We forecast APPF Retail's FFO to debt to remain comfortably above 20%, but debt to EBITDA could be stretched to 2.5x to 3.5x. We have revised the financial risk profile to modest, and applied a positive rating modifier based on the fund's still strong financial metrics. We are affirming our 'A+/A-1' ratings on APPF Retail. The fund's stable asset portfolio and cash flows, and expected benefits from planned developments, underpin the ratings. The outlook is stable. On Oct. 21, 2016, S&P Global Ratings affirmed its 'A+/A-1' ratings on Australian
