Australia-based QIC Property Fund (QPF) could revise its target gearing range to 25%-35% from 10%-20% within the next 12 months. We believe the potential for higher gearing could weaken the fund's credit metrics over the medium to long term and result in the 'A' rating being lowered to 'A-'. On Nov. 4, 2021, S&P Global Ratings revised its rating outlook on QPF to negative. We removed all ratings from CreditWatch, where we had placed them with negative implications on Sept. 1, 2021. The negative outlook reflects our view that at a higher target gearing range, QPF's credit metrics will be inconsistent with our previous expectations for the 'A' rating. If the gearing range is to increase, then we expect the
