Moody's reviews GLP for downgrade

Moody's Investors Service said it placed on review for downgrade GLP Pte. Ltd.'s Baa3 issuer and senior unsecured debt ratings. The outlook was changed to ratings under review from stable.

The review for downgrade follows GLP's proposed privatization and acquisition of an effective economic interest of 67.67% stake in Li & Fung Ltd. on 20 March 2020 for HK$7.2 billion. It also follows the company's acquisition of Goodman Group's Central and Eastern Europe logistics portfolio on March 13, subject to regulatory approval. The Fung family will have 60% of the voting shares of Li & Fung and thus retain majority control.

"The review reflects our concerns that GLP's acquisitions will hinder its ability to reduce its financial leverage amid volatile macro and capital markets conditions, stemming from the rapid spread of the coronavirus," said Stephanie Lau, a Moody's vice president and senior analyst, in a press release.

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