S&P puts Westfield on watch

Standard & Poor's said it placed the long-term A- corporate credit rating on Westfield Group on CreditWatch with negative implications.

The agency also said it affirmed the A-2 short-term corporate credit rating on Westfield and placed the long-term A+ corporate credit rating on Westfield Retail Trust on CreditWatch negative.

S&P also said it affirmed the A-1 short-term corporate credit rating on Westfield and removed it from CreditWatch positive.

The CreditWatch actions follow Westfield's proposal to de-merge its Australian and New Zealand assets into Westfield Retail Trust, the agency said.

The transaction will involve offering Westfield unit-holders entitlement in the trust vehicle, which is to be called Scentre Group. The remaining Westfield portfolio will comprise the assets located in the United States, United Kingdom and Italy, S&P said, and will be called Westfield Corp. Ltd.

The agency said it expects that the proposed demerger would enhance Westfield Retail Trust's competitive position. The size and scale of the portfolio would improve with an exposure to high-quality shopping center assets, S&P said.

However, the demerger also would result in an exposure to asset redevelopment, the agency said.

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