Moody's: K-REIT Asia unchanged

Moody's Investors Service said it sees no immediate impact on the Baa3 corporate family rating of K-REIT Asia following news that it has contracted to acquire a 100% interest in an office property in Australia for A$120 million.

The outlook remains stable.

The acquisition, which represents about 6% of K-REIT's total assets, will be funded by a combination of debt and cash that the trust had raised in its rights offering in November 2009, Moody's said, and will modestly weaken the REIT's debt/asset leverage to 20%.

But the investment will allow for geographic diversity and growth in the company's EBITDA and asset base, the agency said. Good tenant quality and long-term leases also will support income stability, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.