Research Update: GPT Wholesale Shopping Centre Fund Downgraded To 'BBB+' On Prolonged High Asset Concentration; Outlook Stable

GPT Wholesale Shopping Centre Fund (GWSCF) has been unable to diversify its asset exposure away from one sizable but high quality asset. We expect this asset concentration to continue for at least the next six to 12 months. GWSCF remains committed to maintaining more conservative gearing metrics during this period of heightened asset concentration; however, this has not fully offset the impact of this asset concentration risk. On March 12, 2020, S&P Global Ratings lowered the long-term issuer credit rating on GWSCF to 'BBB+' from 'A-'. We also lowered the issue credit rating on the fund's debt to 'BBB+' from 'A-'. The stable outlook reflects our view that GWSCF has financial headroom at the 'BBB+' rating amid a challenging retail

...- GPT Wholesale Shopping Centre Fund (GWSCF) has been unable to diversify its asset exposure away from one sizable but high quality asset. We expect this asset concentration to continue for at least the next six to 12 months. - GWSCF remains committed to maintaining more conservative gearing metrics during this period of heightened asset concentration; however, this has not fully offset the impact of this asset concentration risk. - On March 12, 2020, S&P Global Ratings lowered the long-term issuer credit rating on GWSCF to '###+' from 'A-'. We also lowered the issue credit rating on the fund's debt to '###+' from 'A-'. - The stable outlook reflects our view that GWSCF has financial headroom at the '###+' rating amid a challenging retail and economic environment....

Research Update