Moody's upgrades Goodman

Moody's Investors Service said it upgraded Goodman Group's long-term issuer and senior unsecured ratings to Baa1 from Baa2.

The outlook remains stable.

The agency also said it upgraded the company's long-term issuer rating and senior unsecured bank credit facility rating to Baa1 from Baa2.

Goodman Australia Finance Pty Ltd.'s backed senior unsecured medium-term notes also were upgraded to provisional Baa1 from provisional Baa2, along with its senior unsecured euro medium-term notes to Baa1 from Baa2.

Goodman Funding Pty Ltd.'s backed senior unsecured notes also were upgraded to Baa1 from Baa2 and Goodman Plus Trust's junior subordinate rating was upgraded to Baa3 from Ba1.

The outlook remains stable.

The upgrades follow Goodman's change in gearing policy to 0 to 25% from 25 to 35%, Moody's explained.

Goodman's revised gearing policy will result in a stronger credit profile through the cycle, which underpins a higher rating, the agency said.

The revised gearing level also will result in Goodman sustaining lower levels of debt than it would under the old policy, Moody's said.

The ratings also reflect Goodman's strong market position and brand name as the largest owner of good quality industrial properties in Australia and its market-leading position globally, the agency said.

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