Moody's has withdrawn its Baa3 issuer rating on Cromwell Property Group.
In September, the company proposed to consolidate its Moody's ratings as part of its capital management strategy.
Moody's downgraded the senior secured ratings of Cromwell Property Securities Ltd. and CDPT Finance Pty. Ltd. to Baa3 from Baa2, while Cromwell SPV Finance Pty. Ltd. was downgraded to Ba1 from Baa3.
The outlook on all ratings is stable.
Moody's believes Cromwell's financial and business profiles are weaker compared to other investment grade Australian real estate investment trusts, Maurice O'Connell, Moody's vice president and senior credit officer, said in a release.
Besides its high level of financial leverage, the overall occupancy at Cromwell's office portfolio is noted to be the lowest among its peers, with an exposure to Australia's weaker Canberra and Brisbane office markets.
The rating agency takes the company's improved liquidity into account, following its A$276 million stake divestment in Investa Office Fund.
The stable outlooks mirror the rise in certainty around Cromwell's financial position, given its IOF and Cromwell European REIT investments and funding have been largely resolved.
