Moody's placed Dream Global REIT's Baa2 issuer rating under review for downgrade, following the company's recent agreement to be acquired by funds managed by private equity giant Blackstone Group Inc. in a C$6.2 billion all-cash deal.
The outlook was revised to rating under review from stable.
Moody's sees governance risks in the real estate investment trust's credit profile, including the potential weakening of controls if the company transitions from a publicly listed entity to a private equity capital controlled entity. The review is dependent on whether the transaction is ultimately completed.
Moody's expects to resolve the review once it has enough visibility on the likelihood and conditions of closing of the deal.
