Moody's on Dec. 9 assigned Viva Energy REIT a first-time issuer rating of Baa1, with a stable outlook.

The rating agency said the Baa1 rating reflects the real estate investment trust's geographically diversified asset base. Viva Energy REIT has a portfolio of 464 freehold service stations in Australia, with roughly 83% located in New South Wales, Queensland and Victoria.

Moody's said Viva Energy REIT's rating also takes into account its stable and predictable cash flow, with its 100% occupancy rate, long weighted average lease expiries, predominantly contracted revenue growth and triple net lease structures. The trust has a high tenant concentration risk, with roughly 95% of its leases with a single lessee. The trust's financial profile is also strengthened by its asset portfolio.