Fitch downgrades GLP

Fitch Ratings said it downgraded GLP Pte. Ltd.'s long-term foreign-currency issuer default rating and senior unsecured ratings to BB from BBB-. The agency also lowered the ratings on outstanding debt instruments and removed all ratings from rating watch negative.

“The downgrade reflects GLP's weakened financial profile, with delayed deleveraging via asset monetization leading to a deterioration in interest coverage and debt structure,” Fitch said in a statement.

GLP retains stable bank funding access and is working on securing major credit facilities. “This, together with recently completed asset monetization transactions, should help address its short-term capital market debt repayment needs,” the agency said.

However, GLP's sale of its majority interest in its Chinese logistic asset portfolio to a strategic buyer is taking longer than expected. “GLP says the transaction is still ongoing, but some of the projects considered under the transaction have already been disposed of to third parties or GLP-managed funds,” Fitch noted.

GLP's bank borrowings hit $9.6 billion in the first half of 2023, up from $8.1 billion at end-2022, and now account for 63% of total debt, against 56% in 2022. Most of this increase came from unsecured borrowings from regional and global banks.

The outlook is stable.

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