Research Update: Goodman Australia Industrial Partnership 'A-' Rating Affirmed; Outlook Stable

We expect Goodman Australia Industrial Partnership (GAIP) will mitigate its sizable funding requirements through proactive capital management, including equity and asset sale initiatives. These cash inflows should help the fund maintain key credit measures in line with tolerances for the 'A-' rating. We revised our liquidity assessment on GAIP to adequate from strong, reflecting the increased usage of available liquidity from the group's capital investment program. On Dec. 12, 2023, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on GAIP and the 'A-' issue ratings on the fund's guaranteed debt. The stable outlook reflects our expectation that GAIP will continue to grow its high-quality asset base in line with its operating strategy, while prudently managing its debt usage

...- We expect Goodman Australia Industrial Partnership (GAIP) will mitigate its sizable funding requirements through proactive capital management, including equity and asset sale initiatives. These cash inflows should help the fund maintain key credit measures in line with tolerances for the 'A-' rating. - We revised our liquidity assessment on GAIP to adequate from strong, reflecting the increased usage of available liquidity from the group's capital investment program. - On Dec. 12, 2023, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on GAIP and the 'A-' issue ratings on the fund's guaranteed debt. - The stable outlook reflects our expectation that GAIP will continue to grow its high-quality asset base in line with its operating strategy, while prudently managing its debt usage via various capital management initiatives. We believe GAIP will demonstrate its commitment to the rating by maintaining ratios of funds from operations (FFO) to debt of more than 12% and adjusted...

Research Update