Moody's may downgrade Cromwell

Moody's Investors Service said it placed on review for downgrade Cromwell Property Group's issuer rating of Baa3.

Moody's also said it placed on downgrade review the Baa2 senior secured ratings of Cromwell Property Securities Ltd. and CDPT Finance Pty Ltd.

The ratings follow Cromwell's recording of a high level of financial leverage as of fiscal year-end June 2017 due to its investment initiatives, the agency said.

Financial leverage, measured as adjusted net debt-to-EBITDA, was high at 7.6x as at June 2017 and outside the tolerance level set for the rating, Moody's said.

The agency said it considers Cromwell's liquidity position to be weak as it is funding investments with short-term loans.

The review will focus on Cromwell's debt-reduction initiatives, progress on extending debt maturities and the execution of the CEREIT Singapore initial public offering, Moody's said.

© 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.