RATINGS agency Standard & Poor’s has assigned a ‘BBB+’ long-term rating to Dexus Property Group’s (BBB+/Stable/A-2) $US250 million 144a debt issue.
S&P said the issuers, Dexus Diversified Trust and Dexus Office Trust, benefit from guarantees provided by Dexus Industrial Trust and Dexus Operations Trust.
Proceeds of the issue will be used to repay existing funding arrangements and increase the debt duration to more than four years.
“The ‘BBB+/A-2’ corporate credit ratings on DEXUS Property Group, an Australian-based stapled property group, reflect our opinion of the group’s sector and geographic diversification; good-quality portfolio; solid market position in Australia; conservative investment strategy, with minimal exposure to development risks; and strong liquidity.
“These strengths mitigate the group’s exposure to cyclical office and industrial markets (particularly the industrial market in the U.S.) and its intermediate financial risk profile,” S&P said.
Australian Property Journal
