Fitch: Westfield sale is credit positive

Fitch Ratings said Westfield Group's sale of 90% interest in seven shopping centers in the United States for $1.64 billion is a credit positive for the company.

The divestment to Starwood Capital Group and expected debt repayment with part of the sale proceeds is consistent with Westfield's strategy of simultaneously de-risking its financial risk profile as it transitions to a property manager/developer from property owner/manager, Fitch said.

This is Westfield's second transaction with Starwood and it bears a strong resemblance to the $1.15 billion asset sale announced in April last year, the agency said. Both transactions involved Westfield exiting from the assets, but retaining a nominal 10% interest in direct property income, Fitch said.

Unlike the joint-venture deals done with Canada Pension Plan Investment Board in February 2012, Westfield did not retain management and development rights to these shopping center interests, the agency added.

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