Moody’s rates Globalworth notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to the €550 million senior unsecured notes issued by Globalworth Real Estate Investments Ltd.

The instrument rating assigned to the senior unsecured notes is in line with the company’s Ba2 long-term corporate family rating.

The outlook is stable.

The company intends to use the proceeds to refinance the vast majority of its existing debt and for general corporate purposes.

The notes, which have a five-year maturity, allow Globalworth to extend its debt maturity profile, lower its cost of debt and essentially removing interest rate risk due to the fixed interest rate on the notes, the agency explained.

As per the terms of the prospectus, Moody’s said the notes rank pari passu with all other existing and future unsecured obligations of the issuer and benefit from a negative pledge. Globalworth's financial covenants include maintaining a leverage ratio below 60%, a secured leverage ratio below 30%, and an interest coverage ratio above 1.5 times with a step-up to above 2 times.

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