Moody’s might lower Global Logistic

Moody's Investors Service said it put Global Logistic Properties Ltd.’s Baa2 issuer and senior unsecured debt ratings, as well as the provisional Baa2 senior unsecured medium-term note rating of its medium-term note program, on review for downgrade.

The review follows Global Logistic’s Oct. 2 announcement that it entered into a definitive agreement to acquire from Gazeley, a portfolio of logistic-related real estate assets in Europe, including the U.K., Germany, the Netherlands and France.

The acquisition will bring in total assets of around $2.8 billion and – according to Moody's estimates – debt of around $2 billion for consolidation into GLP's balance sheet at the time of the transaction's closing.

"The review reflects our concerns that the company's progress in deleveraging will be delayed as a result of this acquisition, while its financial and execution risks will remain elevated, given its strong appetite for acquisitions," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

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